The PP market has been struggling with volatile trading
The PP market has been struggling with volatile trading
Later this month, the domestic pp market experienced a sharp rise tumbled, yuyao T30S from on May 20, 8900 yuan/ton rose to 9250 yuan/ton, then began to decline after this rally lasted only a week or so, really is a "roller coaster" general experience. Currently dominate polypropylene market trend is still a supply and demand fundamentals, this round of rising mainly cooperate with crude oil and futures and petrochemical factory price have rise, the market "to buy up not down" psychological exacerbated the rally, but due to the demand in the off-season, terminal enterprises will improve goods co., LTD, supply of goods circulation significantly faster than the terminal link of traders digested progress of the factory. The small increase is a "double day" for manufacturers and trading companies, and it is not hard to see that the profits are not all good for them.
In 2015, polypropylene production enterprise gross profit chart
With the continuous increase of the factory price of the production of polypropylene, corporate profit began to rise, and this week's fluctuation range was 2,100-2,300 yuan/ton. After a continuous decline, the market bottomed out, the downstream of the market purchase, the petrochemical sharply raised the factory price, driving a wave of rebound. The cost pressures have been eased by the fact that the oil market's dollar strength and supply glut are depressing the atmosphere and falling prices. Under the situation of internal heat and external cooling, the profit of production enterprises is driven higher. Early next month is expected to produce enterprise raise expectations, there is still a gross profit margin is rising power, but the terminal demand for restraining the spot market, petrochemical after a wave of raising will soon face downward pressure, production enterprise gross profit will fall, but still much higher than traders gross margin level.
Domestic polypropylene fiber trader Maori pictures
From the figure above, as petrochemical factory prices stop rising at the end of the month, traders are turning to profit, but still hover near the bottom line. Comparing production enterprises considerable margin, is should, June is still demand off-season, order follow up, the downstream enterprises starts continued low, insufficient supply ability to digest makes petrochemical inventory, social inventory will slow down digestion progress, thus higher will face a plentiful supply of polypropylene market, weak demand two mountains, and traders as circulation influence the weakest link in the industrial chain, the late gross margin remained near the profit and loss line, shipment upside down. The above comprehensive analysis, PP market traders was unprepared for snap up and down already, and in the upstream and downstream petrochemical's price factory under the dilemma of weak demand, traders struggling on the margins of society, how to realize the rescue is worth considering the problem of every participant. Small make up that, in the context of the current market, although cannot come true step by step to win, but it can avoid the fall, which requires traders in good times to achieve maximum benefit to reduce losses when market downturn, timely grasp the information and make the right choice
