RIM Market News >  Asian Viewpoints

Forecast of PP market in China

2018/12/21 12:00

The polypropylene (PP) market would likely depend on the trend of crude oil and PP futures markets, operation status of facilities, inventories and operation status of downstream plants.

With the movements of crude oil prices uncertain, the PP futures market on the Dalian Commodity Exchange was weak in the quarter to December. For facilities, a total of 16 PP trains are going to start turnaround in December onward. The total production capacity of operational plants would be around 3.04 mil mt. But since the turnaround is already factored in, some market players forecast the impact on the market would be limited. As Chinese petrochemical producers have been curtailing prices and reducing inventories since second-half November, the high inventory situation for PP improved.

The spot market is expected to be influenced by sales policy of petrochemical producers in the future. But buying interest in PP is not strong as downstream plants are keeping operation rates low toward the end of the year. Under such circumstances, the future PP market is likely to be capped.

Shanghai : Energy Desk  Kin Setsubai  +86-21-5111-3575
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