PP trend is stable and rising, and the market trading atmosphere is flat

Upstream: In July, the PP upstream propylene market was benefited by a sharp increase in international crude oil prices at the end of the month
.
In the downstream of propylene, the domestic acrylic acid market is relatively stable, with a small fluctuation, and the impact on the propylene market is small; Propylene oxide market fluctuations this month obvious, the end of the month quickly rising, the monthly increase of 1.
75%, the monthly amplitude of 4.
70%, or propylene or favorable more impact; In July, the price of epichlorohydrin fluctuated upward, with a monthly increase of as high as 20.
55%, and it was stable at the end of the month, and the recent high finishing operation was the mainstay, or there was some support for the price of propylene; n-butanol increased in mid-to-early July, and stabilized in the later stage, with little impact on propylene; In July, octanol walked out of a peak trend, raised by more than 10% and then fell again, and the current price is similar to the beginning of the month, which has a bearish impact
on propylene.
On the whole, the price of propylene fluctuated upward in July, the inventory in Shandong is low, and the reduction of equipment is favorable, the crude oil market price has risen, which is good for the propylene market, the downstream terminal procurement is cautious, and the industry is more wait-and-see mentality
.
It is expected that propylene prices may narrow in the short term
.

Towards the end of July, merchants actively completed orders, and the pressure on inventory in the market was further reduced
.
In addition, the price of propylene at the cost end fluctuated higher, and some merchants increased their willingness to raise prices, and the domestic PP offer volatility rose
.
At the same time, the sharp rise in futures also boosted spot prices, but some analysts said that spot lacks sustained and effective impulse energy, and there is a possibility
of weak adjustment in the later stage.
Downstream demand remained at a moderate level, and resistance to high-priced goods began to emerge
.
Spot trading has improved compared with the previous period, but PP itself has also entered the traditional demand off-season, and factories have limited improvement in taking goods
.
Zhenhai Refining (Sinopec East China) PP factory price, wire drawing T30S quotation is 8900 yuan / ton
.
Jiujiang Petrochemical (Sinopec East China) PP factory price, brushed T30S quotation is 8800 yuan / ton
.
Fushun Petrochemical (CNPC East China) PP factory price, brushed T30S quotation is 8700 yuan / ton
.
Daqing Petrochemical (CNPC Northeast) PP factory price, brushed T30S quotation is 8900 yuan / ton
.
Dalian organic PP (CNPC Northeast) factory price, brushed T30S quotation is 8750 yuan / ton
.

The future market predicts that domestic PP prices will rise this month, upstream propylene will rise in favor of costs, and futures will rise sharply to boost spots
.
Demand has entered the traditional off-season, weakening the recent upward momentum
.
Dealers' willingness to raise prices has increased, downstream demand has improved limited, and the trading atmosphere is flat
.
It is expected that the recent PP trend is likely to continue to digest the existing gains
.