The hottest supply pressure increases, and the ris

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The supply pressure increases, and the rise of the polypropylene market is limited.

the supply pressure increases, and the rise of the polypropylene market is limited.

April 12, 2019

the macro policy and the crude oil market continued to rise in March to boost the plastic market, but due to the weak domestic supply and demand pattern, the polypropylene market is mainly volatile, and the upward momentum is insufficient. In the future, the polypropylene market is still positive, so can we break the deadlock and shake up

on the cost side, after the Tomb Sweeping Day, the contradiction between the United States and Iran intensifies, and the crude oil output in the Middle East is likely to be significantly reduced, while the OPEC production reduction promotes the continuous strengthening of the oil price. The market is optimistic. When the time comes to 2018, the oil price is likely to rise. In the short term, the measurement of the force value of the tensile test machine is completed through the force measuring sensor, expander and data processing system. The support of the crude oil cost side is strong. On the news side, the news of the renovation of Jiangsu Chemical Industry Park led to a sharp rise in the futures market of chemical products. Obviously, the plastic futures market also followed the upward trend. The sharp rise in the futures market was good for the spot market, and downstream manufacturers actively replenished, trading improved, and the speculation atmosphere began to heat up for Chinese coatings

in the long run, fundamentals are still the main resistance to the upward market. In terms of supply, petrochemical inventory has further accumulated after the holiday, and the domestic polypropylene operating rate is more than 85%. From the perspective of device maintenance this month, there are few shutdown maintenance devices. It is reported that Hunan Changsheng plans to restart in early April. In terms of new capacity, at present, Jiutai energy MTO unit is in the trial run stage, and the products will enter the market in May. At the same time, Hengli Petrochemical is also expected to achieve stable production of polypropylene next month. At that time, the supply sources will increase in succession, which will suppress the price of efforts to improve the integration level of refining and chemical industry

in terms of demand, the downstream construction is relatively stable at present. The downstream market entry in April increased slightly compared with that in March, and the supply of goods was further consumed. In June, the household appliance industry will enter the peak sales season, and the demand for copolymerized PP and homopolymer PP is expected to grow, which supports the price of PP. in the short term, the downstream just needs to purchase, and the market transaction is difficult to be large-scale

to sum up, the short-term cost support market continues to rise, but the pressure from the supply side will gradually increase, and the downstream terminal demand has no obvious recovery, which can output any pressure value according to the actual needs. The loose supply suppresses the upward range of the market. In May, the maintenance of devices increased, coupled with the arrival of the peak season of the downstream home appliance industry, the market is good, but the impact of the new capacity and the digestion of the good news of early device maintenance, Market gains are limited

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