addamopoker| [Polypropylene] The proportion of wire drawing production fell again, helping polypropylene prices rise

Source: Jinlianchuang subscription number

Recently, polypropylene futures have risen sharplyaddamopoker, driving spot prices to rise significantly. Following the shock and rise on May 17, on May 20, the PP2409 contract range opened higher and went higher. The opening price was 7785, the highest price was 7853, the lowest price was 7774, the closing price was 7837, up 134, and the settlement price was 7812.

From a supply perspective, the proportion of wire drawing and production across the country fell again, driving the price of standard products. The ex-factory prices of Sinopec wire drawing in East China, South China, Central China and North China all increased by 50-100 yuan/ton, and the market price of PP wire drawing in major regions generally increased. The mainstream price of wire drawing in North China is 7,650 - 7,780 yuan/ton, the mainstream price of wire drawing in East China is 7,700 - 7,800 yuan/ton, and the mainstream price of wire drawing in South China is 7,700 - 7,800 yuan/ton.

From the perspective of futures technology, from the perspective of the moving average system, the K-line closing station on the 20th is on the 5th, 10th, 20th, 40th and 60th day moving averages, which is more; the trading volume decreases but the open position increases, and the PP position exceeds the L position; the MACD indicator DIFF and DEA are located above the zero axis, and the MACD pillar continues to stretch above the zero axis, which is more trend; the KDJ indicator's three-line indicator is upward.

Near the end of the month, with reduced circulation of standard products and increased technical support, PP remains bullish in the short term. However, it is difficult to maintain the upward trend in the long run.

On the supply side, it is expected that petrochemical maintenance losses will decrease month-on-month in June. Coupled with the commissioning of new units to release production, supply pressure will gradually become prominent. On the demand side, the weather is gradually getting hotter, traditional demand is gradually entering the off-season, orders for injection molding, plastic weaving, film materials, etc. are expected to weaken, and fundamental pressure is too high. There is still uncertainty about the impact of polypropylene raw material export and macro-policy guidance on the plastic terminal, and the PP market is expected to be weak and volatile. Taking East China as an example, the price of PP wire drawing is expected to hover between 7,550 - 7,800 yuan/ton.