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Is polypropylene bottoming out

wallpapers News 2020-12-06

In March, international crude oil fluctuated downward, the cost of domestic polypropylene petrochemical enterprises decreased, their overall inventory increased significantly compared with February.

Under a lot of pressure, major petrochemical manufacturers began to reduce prices for three consecutive rounds since May 5, which led to a sharp rise in the market bearish mentality, traders' quotations fell step by step.

This week, the quotations of polypropylene drawing materials in various places hit new lows in the year.

In this context, the downstream dem has been temporarily enlarged, with factories actively purchasing low-level goods local rush buying phenomenon.

traders also generally reflect that recent transactions have improved significantly, some even say that their weekly shipment volume is the best in the year.

In the low trading amplification is often regarded as a sign of market reversal, but is the polypropylene market really bottoming out? The answer may be that there are different opinions.

According to Yan Kai of Guangdong Plastics Exchange, after the Spring Festival, most downstream factories purchase less, their own stock has been digested.

This centralized purchase phenomenon is mostly forced by just needed production.

But the trading volume amplification is still insufficient, does not reach the conditions of market reversal, with the decrease of low-level goods supply, slightly higher price transaction is still weak.

Combined with the economic data of February, PMI order index of 50.

5 is the second low since October 2012.

Due to the extensive downstream dem of polypropylene, PMI data can well reflect the future dem of polypropylene, which shows that the future market dem is not optimistic.

Therefore, it is expected that there will still be some downward pressure on polypropylene in the future.


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TRUNNANO (aka. Luoyang Tongrun Nano Technology Co. Ltd.) is a trusted global chemical material supplier & manufacturer with over 12 years' experience in providing super high-quality chemicals and Nanomaterials. The nitride powder produced by our company has high purity, fine particle size and impurity content. Please contact us if necessary.
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