Polypropylene (PP) pellets: profit support; market growth

Although it is currently in the off-season demand, there is no shortage of domestic polypropylene pellets market. First, the international crude oil market supports the plastics market. Secondly, the equipment overhaul peak, the social stocks fall back to the supply end, and the recent RMB depreciation, export window opens, demand At the end of the easing, the market supply and demand pattern improved and supported the market again. After the market's focus continued to rise, the profit from the main sources of domestic polypropylene was also a significant increase in the market.

The profit of polypropylene from various raw materials increased in different degrees this month. The average profit of oil-based polypropylene was 1,581 yuan/ton, up 6.32% from the previous month. The oil market was intertwined in the month, and the Sino-US trade conflict heated up. The pressure on crude oil and other risky assets, combined with the rebound of the US dollar, has pushed down the price of oil. However, concerns from the supply side have raised oil prices. The price of crude oil in the month has fallen slightly from last month, and the profit of oil-based polypropylene has been higher but limited. The average profit increase of coal-based polypropylene during the month was limited. Due to safety and environmental protection inspections, coal mine start-up was blocked. At present, the demand season is high. The supply shortage is still high, and the coal-based polypropylene profit is still high in the month. The increase was 0.64%. The methanol was subject to pressure in the downstream consumption during the month, and the methanol-to-polypropylene profit increased significantly.

It is expected that the domestic polypropylene pellet market is expected to rise in the late stage. Shenhua Ningmei, Shenhua Xinjiang, Daqing Petrochemical, Daqing Refining and other equipment have maintenance plans, and the market supply will continue to be tight. At the same time, the traditional demand season is approaching, downstream or Advance stocking, terminal demand is expected to improve, market supply and demand pattern is expected to support the market upwards. The corresponding polypropylene profit surface has also changed.

Oil market supply side concerns continue, but Sino-US trade conflicts continue to weigh on the oil market. It is expected that the oil market will continue to be consolidated in the later period. The profit of oil-based polypropylene may be improved due to the higher price of PP. However, in terms of coal, The production profit is considerable. After the environmental protection inspection, the open-pit coal mines that meet the environmental protection requirements are actively resuming production and the demand in the peak season is large to support the coal price. The coal price is expected to remain high, and the coal-based polypropylene is expected to have limited profit changes next month. In terms of methanol, the northwest region The supply will gradually increase, and the arbitrage space will gradually open. However, the downstream consumption of methanol is not good, and the market is in conflict with the high price. Therefore, the high methanol price is difficult to maintain. The profit of methanol polypropylene is expected to continue to rise.

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