Polypropylene | The recent demand-oriented outstanding market weakness may continue
Generally speaking, the price trend of a product is determined by supply and demand, but its direct factor is cost. The trend of polypropylene market in 2022 will also revolve around supply and demand and cost. In addition, import and export, macro policies and The economic side and the above factors mutually restrict and act, thus guiding the price trend of polypropylene products.
In March 2022, for polypropylene, the cost aspect is undoubtedly the most prominent, and due to the high cost, other influences are relatively weakened, and the price of polypropylene continues to rise. At that time, the price of polypropylene wire drawing in East China rose to 9,500 yuan/ton, while In the recent stage, the demand side of polypropylene has gradually gained the upper hand, although the supply side of polypropylene has also shown a positive push, including the social inventory of polypropylene, the overall operating rate of polypropylene has dropped to the low point of the year, and the maintenance of polypropylene enterprises has been affected by the cost. volume increased significantly.
From the perspective of polypropylene maintenance volume, 2022 will reach the highest point in recent years. This week's maintenance volume is 14.265. This week, the new parking devices include Daqing Refinery Line 1, China Shipping Shell Line 2, Shenhua Xinjiang, etc. This week's start-up devices include Maoming Petrochemical second-line, Haiwei Petrochemical, Zhejiang Petrochemical 4PP, etc. The above-mentioned advantages have not caused a significant pull on polypropylene. On the contrary, the pressure from terminal demand has gradually become prominent.
There are many reasons for the sluggish demand for polypropylene terminals. Among them, the primary factor is that under the cover of long-term and repeated epidemics, the performance of orders from terminal factories in terms of radiation area and degree of impact has dropped to the lowest in recent years, except for the impact of the epidemic. In addition, many places have ushered in hot and dry weather this year, and there is a large gap in power supply. At the same time, some factories have launched power curtailment policies since the beginning of August, mainly in Southwest and East China, where power curtailments are long and intensive. In addition, some areas in central China are also implementing staggered power consumption.