Polypropylene (PP) 2023 Week40 Price Index

Price Index

PP Price Index

PP Price Index

Usage ClassificationWeek 36 (09/03-09/09)Week 37 (09/10-09/16)Week 38 (09/17-09/23)Week 39 (09/24-09/30)Week 40 (10/01-10/07)ChangeUnit
PP Fiber Grade$1,076.65$1,089.51$1,095.08$1,071.71$1,062.74($12.91)USD/ton
PP Injection Grade$1,080.21$1,102.47$1,108.02$1,086.30$1,075.34($16.87)USD/ton

Overview of the PP Price Index

The domestic PP market exhibited a relatively weak trend today, with a price decline of 50-80 RMB/ton. The downward shift in oil prices during the holiday period had a certain impact on market sentiment after the holiday, coupled with some petrochemical companies lowering their factory prices, which weakened the support for the cost of goods. Traders focused on offering discounts to facilitate sales, while downstream end-users showed limited purchasing intentions, cautiously maintaining minimal demand. The market trading atmosphere on the first trading day after the holiday was not ideal. Today, mainstream prices for drawn products in North China ranged from 7,600 to 7,800 RMB/ton, in East China from 7,700 to 7,800 RMB/ton, and in South China from 7,620 to 7,900 RMB/ton.

The PP USD market witnessed a narrow downward trend today. There were no futures guidance in the market today, and the slight decline in spot prices was influenced by the decrease in crude oil prices during the holiday period. As downstream end-users returned from the holiday, most remained cautious and adopted a wait-and-see approach, resulting in limited willingness to enter the market for purchases. In terms of domestic prices, the reference prices for drawn products in USD ranged from $900 to $920 per ton, while for copolymer products, the reference prices ranged from $910 to $950 per ton, mainly for the 10-11 shipment period. Zhuochuang Information believes that the PP USD prices may experience consolidation, and the expected range for tomorrow’s drawn product prices is $890 to $920 per ton.

Upstream Market Summary

There are signs indicating that the economy and demand remain strong, leading to a slight rebound in international oil prices. However, concerns about US interest rate hikes have weighed on oil prices, resulting in the largest weekly decline since March. On Friday, October 6th, the settlement price for November 2023 WTI crude oil on the New York Mercantile Exchange was $82.79 per barrel, up $0.48 from the previous trading day, with a percentage increase of 0.58%. The trading range was $81.5 to $83.28 per barrel. The settlement price for December 2023 Brent crude oil on the Intercontinental Exchange in London was $84.58 per barrel, up $0.51 from the previous trading day, with a percentage increase of 0.61%. The trading range was $83.44 to $84.95 per barrel.

Future Trend

On the first trading day after the holiday, there were no futures guidance, and the spot market showed a weak downward trend. The downward shift in oil prices weakened the cost support for polypropylene, coupled with increased pressure from petrochemical inventories after the holiday and downward adjustments in factory prices in certain regions. Market sentiment has turned cautious. Actual demand from downstream factories is relatively limited, with most opting for minimal purchases to maintain essential needs, resulting in a cautious mood in entering the market. Based on this, JHP  predicts that the short-term PP market will continue to exhibit a weak trend. Taking East China as an example, the price range is expected to be between $770 and $780 per ton.

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