Domestic PP Market: Inventory & Price Trends
Domestic petrochemical inventory: The inventory of polyolefins of the two oils is 870,000 tons, an increase of 40,000 tons from last week.
Futures analysis: On June 9, PP2509 opened at 6930, the highest price was 6953, the lowest price was 6917, the position was 516339, the settlement price was 6935, the settlement price yesterday was 6926, the increase was 9, the daily trading volume was 229503 lots, the deposited funds were 2.505 billion, and the capital outflow was 4.94 million.
Market mainstream quotes for wire drawing:
Domestic spot market analysis: Today, the domestic PP market as a whole showed a trend of stable and strong consolidation. Among them, only the market price in East China rose slightly, with an increase of 0-20 yuan/ton. The market prices in other regions remained stable.
In terms of price: the mainstream price of domestic polypropylene ranged from 6930 to 7240 yuan/ton. On the cost side, the crude oil market is supported by favorable factors such as the decline in trade environment risks, the improvement of US non-farm employment data and the continuation of its traditional fuel consumption peak season.
International oil prices continue to rise, providing certain cost support to the PP market. However, there is still pressure from the increase in production on the supply side. Coupled with the cautious pace of downstream purchases, the market is mainly on the sidelines.
Analysis of the domestic futures market: The night trading price of the PP2509 contract rose to the intraday high of 6953 and then fell, with a slight fluctuation in the late trading; the range was consolidated after the opening of the morning session, and the late trading was weak; the price fluctuated upward in the afternoon.
As of today's afternoon closing, the PP2509 contract fluctuated between 6917 and 6953 throughout the day, with a spread of 36. The 09 contract increased its position by 452 lots, and the current position is 516,339 lots.
Market Forecast: In terms of raw materials, the crude oil market may be affected by the geopolitical instability, favorable factors such as the US summer travel peak season, and unfavorable factors such as OPEC+ maintaining its position of increasing production.
However, China and the United States will hold a new round of economic and trade talks this week, and demand expectations are expected to improve. We also need to pay attention to the impact of related changes on international oil prices.
In terms of supply, the number of PP units scheduled for maintenance on the site this week is limited. In addition, PP units such as the Beihai Refinery, Jinan Refinery, and Changling Petrochemical, which involve a production capacity of about 500,000 tons, are scheduled to resume operation. It is expected that the impact of the shutdown of the unit may continue to decrease.
In terms of demand, traditional downstream demand is flat, and it is expected that the improvement prospects in the short term will be difficult to improve. Overall, the polypropylene market is expected to fluctuate in the short term.
Domestic PP Index: According to Tu Duoduo data, the domestic PP spot index was 7072.00 on June 9, up 2, an increase of 0.03%.
Guoneng auction statistics: Guoneng Coal Chemical's auction volume today was 2,002 tons, up 6.04% from yesterday; the transaction volume was 1,836 tons, up 8.06% from yesterday; the transaction rate was 91.71%, up 1.72% from yesterday.
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