PP market is expected to start a rally

        Since July, the overall performance of the PP market has been we.

Up to now, the mainstream drawing price of PP market is 8700~9000 yuan (ton price, the same below), and the mainstream low melting copolymer price is 8800~9100 yu.

Looking at the market outlook, driven by many positive factors, the PP market is expected to start a ral.

        First, demand is expected to impro.

        The lower demand for PP in the early stage is related to the strict inspection of environmental protecti.

In May of this year, the central ecological and environmental protection inspection team gave feedback to 10 provinces including Liaoning, Jilin, Shanxi, Shaanxi, and Anhui to "look back" inspection opinio.

The second round of central ecological and environmental protection inspections is underw.

Since mid-July, 8 inspection teams have successively stationed in 6 provinces including Shanghai, Fujian and Hainan, and 2 central enterprises of China Minmetals and ChemChi.

Since May, environmental inspections have had a certain impact on the downstream production of PP, and the operating rate of the downstream plastic weaving and BOPP industries has dropped to 50-6

        However, with the end of the environmental supervision and the loosening of the summer power curtailment policy, the downstream demand for PP is expected to improve in the middle and late August, and the operating rate will increa.

Coupled with the arrival of the traditional "Golden Nine Silver Ten" demand season, the booming terminal consumption in the second half of the year will stimulate the PP market to impro.

In addition, with the promotion of garbage classification nationwide, the plastic products industry has turned into a boom in the off-season, which also brings benefits to the PP market, and is expected to usher in a peak in demand in August and Septemb.

        Second, the cost support is stro.

        Since June, the tension in Iran in the Middle East has intensified, and OPEC countries have continued to extend the production cut agreement, and international oil prices have rebounded significant.

As of the end of July, WTI oil prices closed at $505 a barrel, and Brent oil prices closed at $672 a barr.

The recent API report said that API crude oil inventories fell sharply again, while refined oil and gasoline inventories also decreas.

crude inventories fell by 024 million barrels to 443 million barrels at the end of Ju.

        Looking at the market outlook, the threat of the Strait of Hormuz, the confrontation between Iran and the United Kingdom, and the simultaneous patrols of the United States and Europe in the Persian Gulf may reignite tensions, resulting in relatively high international oil prices and cost support for .

        Again, there are more maintenance in the later peri.

        Since the second quarter, domestic PP overhaul devices have increased, and the operating rate has gradually decreas.

Although the operating rate once returned to more than 90% in June, the number of maintenance companies has increased again since July, especially in the middle and late July of Dushanzi, Shenhua Yulin and other centralized maintenance, which reduced the operating rate of domestic PP plants to around 8

        In the later period, Daqing Refinery, Yan'an Nenghua, Shenhua Xinjiang and other large-capacity plants still have maintenance plans in August; Shenhua Baotou and Guangzhou Petrochemical plants are scheduled to be overhauled in September and October, and the new capacity expansion plants are temporarily unable to be mass-produc.

, The supply pressure of PP is not big before September, and the market price is expected to ri.