Epidemic + cold winter, polypropylene market plummets

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At present, the short-term market for polypropylene has intensive bearish sentiment, and new expansion devices on the supply side are gradually increasing, while the demand side is subject to the close end of downstream orders, demand follow-up is weak, and the contradiction between supply and demand is extremely prominent. On January 11, Jinlianchuang Plastics analyst Fu Xi believes that the new crown pneumonia epidemic counterattack at the end of 2020 will increase the difficulty of supplying the polypropylene market. The whole market is in a bearish downward state, and the short-term market decline is difficult to compensate. "As the number of new expansion devices is gradually increasing towards the end of the year, the pressure on supply and demand is obviously prominent, which is the main factor that ultimately drags down market offers." Fu Xi analyzed.

At the end of 2020, the cold winter hit most parts of my country. The ice and snow weather superimposed on the northern part of the epidemic to compensate, road transportation was blocked and terminal demand was weak, which aggravated the condensed atmosphere of the polypropylene market. , Limited follow-up of factory orders has become synonymous with the market. Fu Xi introduced that in mid-to-late November 2020, the polypropylene market price has gradually fallen into a downward trend, and the downward trend in December has become more apparent. On the one hand, it was due to national policy restrictions in December, power rationing and environmental protection policies, and the shutdown of downstream factories restricts the overall market demand for follow-up; on the other hand, the main reason is that transportation restrictions caused by the epidemic, such as Dalian, Shenyang, Hebei and other places. At the same time, some refineries in the north have become more difficult to transport due to the impact of the epidemic, and production companies have begun to block warehouses.

Despite this, the polypropylene futures continued to rise in 2020, verifying that the financial properties of polypropylene have become more and more obvious, but the spot market in December has been weak in trading, and the futures has risen for several consecutive rounds and eventually fell into a downward trend. "The decline in polypropylene futures and spot prices has made the market's worries more obvious. The industry's worries about bearishness will inject a cardiotonic into the market. New capacity expansion devices have successively released production. However, Haiguolong Oil has not yet mass-produced, and the short-term market is bearish again. Entering a stalemate and slanting down state."