When does the PP market "have a long way to go"?

In May, the PP market was overwhelmingly windy, and the price center of gravity continued to move downward.
According to analysis, in addition to the frustration and restraint mentality of PP's main futures, the petrochemical companies' move to lower the ex-factory price has also caused a big impact on the spot market.
Affected by this, traders are not strong in hoarding goods, and the operation is mainly based on fast in and out.
However, end users are generally cautious in purchasing, and can maintain production within nearly a week, and basically do not do too much hoarding.
As of the end of the month, with the exception of fibers, powders, and pipes that were relatively stable, other resources had fallen to varying degrees, especially the transparent material M800E.
After being frantically speculated to a high level in the early stage, the current price has gradually returned to rationality.

Can the PP market in June usher in a turnaround opportunity?

1.

The divergence between supply and demand has increased, which has caused power failure.

Regarding the future trend of crude oil prices, the industry mostly believes that the driving force for the rise is declining.

1.

2.

PP futures are weak and under pressure, and the spot market is hard to be optimistic.

As of today, it closed at 8366 yuan/ton, a decrease of 350 yuan/ton from the beginning of the month (8726 yuan/ton).

The main weak trend of PP futures has outstanding characteristics, especially since mid-May, it has been in a downward trend of shocks, and there is no sign of stabilizing or rising.

3.

It is known that there are not many planned overhauls and the supply of resources is relatively stable.

It is currently known that only Shenhuaning Coal Line 1, 2, 3, and 4 have an overhaul plan in early June, and it is expected to stop for about 20-25 days.

In addition, the parked Zhenhai Refinery 2PP will drive in early June, and the drive time of Shenhua Xinjiang is to be determined.

4.

The peak power limit in summer hits, and terminal demand is facing a test

The terminal demand lacks hot stimulus, and the overall performance has always been "lack of good news.

" In addition, as the summer strikes, all regions will inevitably initiate production curtailment measures.

Taking all parties together, there are not many factors that stimulate the PP spot market to counterattack.

Therefore, the trend of intraday loosening may still be the main tone under the condition that the basic pattern has not changed.

　　Transfer from: China Plastics Online