[Plastic] Cost collapsed polypropylene down to find bottom

Although the current polypropylene market is still in a situation of oversupply, under the background of production companies taking the initiative to reduce production and the concentration of downstream enterprises to resume work, the oversupply situation has not deteriorated, but signs of improvement have appeared.

Raw material prices fell sharply

OPEC's February report estimated that global crude oil demand in 2020 will be 107.

Not only that, at the end of February, social public incidents gradually spread from China to Japan, South Korea, Italy, Iran and even the world.

However, at the ministerial meeting last week, due to Russia’s opposition, the production restriction agreement was ultimately not reached, and OPEC crude oil production in April will no longer be restricted.

Demand companies gradually resume work

Affected by social and public events, polypropylene downstream production enterprises are restricted from resuming work, and operating rates have been at a low level for a long time.

The supply and demand pattern of polypropylene has improved, but the upstream crude oil price has fallen sharply, and the collapse in cost has become the dominant factor in the price limit of polypropylene yesterday.

(Keyword: Polypropylene)