7 PP market in the month of flat light through, the overall market basically no outstanding performance. According to analysis of the market is not the key to the choice of direction, on the one hand, the downstream wait-and-see sentiment is strong, the enthusiasm of the factory to enter the market is generally not high, the status quo is difficult to break through, the market is lack of fundamental power. On the other hand, although the petrochemical factory price has risen and fallen, the cost support role is still stable, and the propylene monomer shocks upward, and still forms a certain support for the spot. By the end of the month, in addition to wire drawing, homopolyser injection molding, copolymerization injection molding, pipe quotation fluctuations, powder, transparent, fiber material basically unchanged from the beginning of the month. Among them, drawing and copolymerization plastic fell 250 yuan/ton, respectively reported 8950 yuan/ton, 8650 yuan/ton, pipe material fell 100 yuan/ton to 9500 yuan/ton, and homogeneous polymer injection plastic rose 100 yuan/ton to 8100 yuan/ton.

PP market opening bland in the third quarter, then in the next two months, situation can change weakness broken and stand?

First, the prospect of crude oil consumption is not optimistic, the $40 mark defense war or will continue

7 Since the month, global stocks, oil synchronous trend characteristics are more prominent, crude oil prices basically maintain a slow upward rhythm. However, it is reported that OPEC+ oil producers decided to reduce crude oil production from August, the tight supply situation will be eased, coupled with European and American countries and emerging economies the new coronavirus pneumonia epidemic is still spreading, crude oil demand prospects are still not optimistic, and the pressure will gradually increase in the later stage.

Second, the growth rate of production capacity is faster than the growth rate of demand, and the later trend is still not optimistic

China's propylene production capacity has expanded rapidly in recent years, and the self-sufficiency rate has steadily climbed. According to statistics, the first half of the output reached 16.6068 million tons, an increase of about 7.6% over the same period last year. However, propylene demand is growing more slowly than production capacity, and China has to face a situation of overcapacity. As a result, in the third quarter, the price of propylene did not stand out. As of today, in addition to Daqing blue first grade products rose 70 yuan/ton from the beginning of the season, the other manufacturers of propylene prices are declining. No surprise, production growth in the second half of the year is still expected, propylene market trend is still not optimistic.

Three, petrochemical maintenance device frequent driving, pressure on the supply side increased significantly

Zhongjing Petrochemical PP device originally due to insufficient raw materials and maintenance, has been normal operation in late July. The PP device with an annual capacity of 120,000 tons/ton of Jingmen Petrochemical has also recently resumed production; Zhongtian Hechuang PP tubular device was stopped for maintenance on June 3, and is currently resuming work; Maoming Petrochemical PP first line polymerization gas tight pressure is ready to restart. In addition, Bora LyondellBasell PP plant plans to test run the cracker at the end of July, and the specific time to produce the product depends on the test run. In general, with the frequent driving of the maintenance device, and the imminent impact of the new device into production, the market supply pressure will gradually appear, and the possibility of introducing a price reduction policy will increase in the later stage under the pressure of petrochemical destocking.

4, from the "plastic limit" to "lent" products enterprise facing the biggest test

the harm of "white pollution" known. 2020 At the beginning of the year, the National Development and Reform Commission and the Ministry of Ecology and Environment issued "Opinions on Further Strengthening the control of plastic pollution" to ensure a large reduction in the use of plastic products. According to the above opinions, by the end of 2020 every year, it is necessary to take the lead in banning and restricting the production, sale and use of some plastic products in some regions and some fields. Among them, in the new version of the "plastic limit Order" clearly stipulates that the at the end of the comprehensive ban on plastic straws is China's plastic pollution hit another punch. In addition, the prohibition and restriction of other related plastic products have been arranged in stages, when China's plastic products industry will experience a new round of tests.

Overall, the unfavorable factors on the floor obviously take the upper hand, so if there is no stimulus of sudden hot spots, the possibility of a significant reversal in the market is unlikely.