On February 4, Shandong Huifeng Petrochemical Co., Ltd. announced the latest ex-factory price for propylene, raising it by 40 yuan/ton to 6,500 yuan/ton. The downstream 150,000-ton/year PP unit was shut down on March 22, with the restart time yet to be determined.
PriceSeek Analysis:
Propylene, Bull-Bear Score: 1
The ex-factory price of propylene increased by 40 yuan/ton to 6,500 yuan/ton, indicating tight supply or stronger cost support, which directly benefits spot prices. The shutdown of the downstream PP unit may slightly reduce demand, but the price increase reflects strong market confidence. Overall, this is assessed as a moderate positive.
Polypropylene, Bull-Bear Score: 1.5
The shutdown of the downstream 150,000-ton/year PP unit has led to a reduction in supply, benefiting polypropylene spot prices. Combined with futures data, the main contract, such as 2605, rose by 52 yuan, and open interest increased by 11,151 lots, indicating strengthened market bullish expectations and benefiting futures prices. Considering the supply contraction and positive futures signals, this is assessed as a stronger positive.
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