General Industry Overview
Geopolitical tensions ease to eliminate risk premium, dragging crude oil and raw material costs lower.
Downstream weak demand in off-seasons puts continuous pressure on all PP related product markets.
The huge basis spread between PP spot and futures will start reasonable correction this week.
1. Weekly Forecast of PP Granules Market
The overall price center of domestic PP granules will move downward steadily this whole week.
Falling crude oil weakens cost support and restricts the upward space of polypropylene raw materials.
PP futures drop due to future sufficient supply while spot goods decrease in a mild range now.
Enough circulating spot goods will narrow the basis spread gap in the recent trading period.
Lack of new downstream orders raises sales pressure among all domestic plastic traders currently.
Weak demand and loose cost push PP granule spot prices to face further correction pressure.
2. Weekly Forecast of PP Powder Market
Domestic PP powder will run weakly under the game of supply and demand this week.
Low operating rate of powder factories leads to tight on-site goods supply in the short term.
Resumed production will increase market goods and bring growing supply pressure gradually later.
Low fluctuating propylene raw materials fail to offer strong price support for PP powder.
Traditional consumption off-season keeps terminal purchasing demand in a sluggish state widely.
Widened price gap between powder and granules forms basic bottom support for PP powder prices.
3. Weekly Forecast of BOPP Film Market
Declining PP raw material prices can hardly provide solid cost support for local BOPP film.
Downstream tape factories only make sporadic stock purchases before the Dragon Boat Festival.
Market participants hold cautious attitudes and refuse large-scale centralized stock preparation.
Only low-price BOPP film goods gain partial transactions amid the overall sluggish market demand.
The BOPP film market will fluctuate narrowly with flexible negotiated trading rules this week.
4. Weekly Forecast of CPP Film Market
Sustained falling crude oil drives PP resin prices to keep moving down in the raw material market.
Finished goods stock preparation for 618 shopping festival has finished completely in packaging industry.
Food and daily packaging orders reduce sharply in the traditional packaging demand off-season.
High finished product inventory slows down goods delivery speed of downstream processing factories.
Buyer wait-and-see sentiment leads to thin market transactions and limited spot purchasing volume.
CPP film quotations will stay weak and follow the trend changes of upstream PP resin…
