Polypropylene pellets: short-term positive stimulus | market break away

Although the crude oil fell sharply, but the impact on the plastics market is limited. Petrochemical strong support market is not good, but the terminal demand is weak, the market is long and short, and the shock consolidation is the main. The recent futures strength is rising, the market is prosperous, and the price continues to rise. The pressure on merchants' stocks is limited, and the willingness to keep up with the highs is strong. Can the market support in the later period continue?

In terms of cost, the United States may release strategic crude oil reserves, suggesting that Saudi Arabia may not be able to effectively increase production according to Trump's requirements, and that the United States imposes new sanctions on Iran, putting Iran at risk of falling oil exports. The uncertainty of these events It makes it difficult for the market to anticipate the extent and timing of changes in the crude oil market in the near future, which will make the short-term fundamental outlook of the oil market unclear, and the oil price volatility will remain at a high level. At the same time, the petrochemical inventory consumption is obvious, the pressure is not large, and the local rotation is mainly , the source of cost support is not reduced.

On the demand side, due to the ban on waste plastics during the year, domestic demand for new materials increased significantly compared with last year. However, while China's waste plastics basically stopped importing, international crude oil prices have risen sharply, and domestic downstream enterprises have indirectly suffered from rising costs. Downstream plastics The profit of the products companies was under pressure. The overall construction started to decrease compared with the same period of last year, and the recent market price trend is difficult to be clearly guided. The downstream supply procurement continues to be just needed, and the terminal demand is difficult to release.

In summary, the current peak period of maintenance is over, while the downstream factories are cautious about receiving goods at high prices. The contradiction between supply and demand in the market is still there. However, the strong support of cost, coupled with the short-term RMB depreciation, the rapid increase in import costs, and the relaxation of monetary policy, Zhongyu is expected The domestic polypropylene market has a strong rebound in short-term memory expectations.

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