February 10, 2022
The PP market fell for a while today, but stopped falling and rebounded in the afternoon. Oil prices continued to soar and hit new highs in stages. PP futures fell sharply and dragged down the spot in early trading, but rebounded strongly in the afternoon, and the PP spot stopped falling and rebounded in the afternoon.
At present, the mainstream price of wire drawing in North China is 8200-8300 yuan/ton, the mainstream price in East China is 8300-8400 yuan/ton, and the mainstream price in South China is 8300-8500 yuan/ton; the mainstream price in North China is 8500-8600 yuan/ton, and the mainstream price in East China The price is 8600-8800 yuan / ton, and the mainstream in South China is 8700-8800 yuan / ton.
Today, the main 05 contract of PP continued to rebound and rose to around 8450. Although PP fell sharply during the session, it recovered and hit a new high in the afternoon. At present, the focus of PP price has gradually shifted upward, and the moving average divergence and upward support is strong. Coupled with the strong oil price, PP is still in an upward channel.
03Upstream Overview
Crude oil: WTI closed, Brent rose 0.42 to 86.48.
Propylene: The mainstream price of propylene in Shandong is 8050-8100 yuan/ton, up by about 50 yuan/ton.
04 Outlook
From a fundamental point of view, the operating rate of PP has dropped again, the supply pressure has eased, the demand side has maintained rigid demand, and the northern region is rushing to make orders before the holiday, and the petrochemical destocking speed has hit a new low after the Spring Festival; Against the background of industry losses, PP cost support is strong. Under the support of low PP inventory and cost before the holiday, PP is still easy to rise and hard to fall before the holiday.
