How about the downstream construction of polypropylene

Entering 2021, the Spring Festival is getting closer and closer, but the epidemic prevention and control situation is more severe and complicated. In the past few days, sporadic cases in many places in China have caused great concern. Hebei announced that it has entered a war-time state, Dalian has super spreaders, imported mutated viruses... the wave of epidemics at the end of the year and the beginning of the year continues one after another. So, will the repeated epidemics affect the start of polypropylene downstream?

After New Year's Day, environmental protection and power rationing were gradually lifted, and the operating rate of downstream plastic weaving gradually returned to stability. However, due to the recent repeated epidemics and the approaching logistics and transportation of the year, most businesses maintain a wait-and-see attitude and just need to replenish the inventory. The market transaction atmosphere is relatively low. In addition, some small factories entered the Spring Festival holiday early in mid-to-late January, so the overall operating rate of the plastic weaving industry remained at about 50%. The overall start of the injection molding industry has not changed much, and the orders of enterprises are relatively stable, and the operating rate remains at around 61%. There are few BOPP membrane factories affected by the epidemic. Most membrane factories deliver normally. The membrane factories mainly submit previous orders. However, the situation of new orders is poor and limited market support. The Shandong factories that had stopped work due to environmental protection issues in the north before the holiday have started operations, and some factories in Zhejiang affected by limited electricity have also resumed normal production. BOPP operating rate has increased compared with the previous period. The overall start of the injection molding industry has not changed much, and the orders of enterprises are relatively stable, and the operating rate remains at around 61%.

At present, due to the impact of public health incidents, the market mentality is relatively low, coupled with the temporary improvement of downstream orders and weak futures trends, Zhongyu expects that the operating rate of downstream industries will decline slightly in the near future.