RMB exchange rate breaking 7 affects limited short-term polypropylene market risk controllable

On August 5, 2019, the offshore and onshore exchange rates of the RMB both broke 7, which was the first time in a decade that it brokeThe strength of the US dollar and the uncertainty of the Sino-US trade war escalated again, prompting the devaluation of non-US currencies, the slowdown of the Chinese economy and the The threat of a global trade war initiated by the United States has quietly changed the risk appetite of overseas funds for the Chinese mark.

Judging from the comparison of import volumes over the years, with the rapid expansion of domestic production capacity, the domestic supply has gradually increased, the competition of homogeneous products has intensified, and high-end materials still rely on impor.

In recent years, the contradiction of oversupply in the polypropylene market has become more and more obvio.

It is worth noting that with the escalating Sino-US trade war, the market confidence index has been severely damag.

The downstream plastic product processing industry is a labor-intensive industry, and the export value accounts for a large proportion of the total domestic expo.

At the end of August, downstream enterprises will enter the stage of centralized stocking before the peak seas.

In general, the RMB depreciates due to market forces, the current economic downturn is obvious, monetary and fiscal policies are stretched, and the market-based exchange rate depreciation objectively stimulates expor.