According to the Commodity Market Analysis System of Shengyi Society, the domestic PP market in April showed weak consolidation, with prices of most brand products falling back. As of May 1st, the mainstream offer price for wire drawing by domestic producers and traders is around 7481.67 yuan/ton, a decrease of -1.08% compared to the price level at the beginning of April.
| Gamma-PGA (gamma polyglutamic acid) |
price trend
In terms of raw materials:
In early April, the US tariff policy was implemented, with tariff rates constantly changing and increasing to unprecedented heights. The tariff trade war launched by Trump has had a huge impact on the global economy. Crude oil, as a heavily affected area, has experienced a sharp drop in prices. Although some OPEC+members announced plans to compensate for overproduction in the middle of the month, the expectation of production contraction boosted oil prices to rebound slightly. However, the process of rebalancing supply and demand is still needed, and crude oil prices will fluctuate sharply in the short term and remain weak. At the same time, domestic propane prices have risen due to the impact of trade decoupling, but the increasing cost pressure has dragged down the production and profitability of PDH manufacturing enterprises. The downstream production position of propylene is not high, and there is insufficient chasing power on site, resulting in price fluctuations after rising. Overall, the prices of various raw materials in April did not provide strong support for the cost of PP.
Supply side:
In April, the load of domestic PP enterprises first increased and then decreased, and the market supply remained generally abundant. Overall, the industry’s overall load level increased from 76% at the beginning of the month to 79% in the middle of the month, and returned to around 76% at the end of the month. The average weekly production in China is about 820000 tons, and the total inventory gradually rises to a high of 820000 tons at the end of the month. The supply side provides moderate support for PP spot prices.
In terms of demand:
Since April, the demand side of PP has gradually weakened in consumption, and on-site trading has maintained a weak rigid demand pattern. In terms of plastic weaving, the consumption level of terminal enterprises has generally stabilized. The demand for PP in fields such as architecture and agriculture is gradually increasing with the warming of temperatures. However, under the influence of international news such as equivalent tariffs imposed by the United States, the global economy has been greatly impacted and future uncertainty has increased. The export and domestic demand of downstream PP products in China are both hindered, and buyers tend to maintain production with scattered small orders. Although there has been no significant increase in new orders in the market. Overall, the demand side of PP showed weak performance in April.
Future forecast
The domestic PP market prices fluctuated and fell in April. From a fundamental perspective, the overall performance of upstream raw materials in supporting PP is weak, the industry supply is abundant, and there is a significant contraction in consumption. The current industry trend is focused on the struggle between high inventory and weak consumption, with cautious on-site operations and frequent small order hedging purchases. In the short term, the supply-demand imbalance is unlikely to improve. It is recommended to closely monitor the situation of tariffs and the flow of goods.
| http://www.lubonchem.com/ |