Under the peak season of "polypropylene (PP) pellets", where will the market go in October?

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Before the holiday, polypropylene pellets rose sharply under the rapid rise of futures, superimposed raw material costs rose rapidly, low two oil inventories, the arrival of the peak demand season and other favorable factors, the market picked up rapidly, once approaching the high level of the year, but can such a rise be sustained?

After the return of the holiday, the futures market shock fell, the market price fell slightly, but on the whole, the market situation in September, the cost side support is strong, the coal price is running strongly and there is no obvious turnaround, the support of raw material costs is still more obvious, under the pressure of high costs, PP prices remain high, and affected by the relevant policies of energy consumption double control, production devices in some areas have reduced their negative or stopped, boosting the market speculation atmosphere.

The impact of the release of new device capacity is still continuing, and the current inventory level of petrochemical enterprises remains neutral, and there is no pressure on inventory. On the demand side, at present, the downstream is in the "Golden Nine Silver Ten" demand peak season stage, close to the National Day holiday, the overall order of the plastic knitting industry increased slightly, but due to the overall downstream production profits, the downstream demand performance is not as good as in previous years, and the demand support may be limited. It is expected that the next PP market will be highly consolidated.

At present, the national "energy consumption double control" policy continues, and some areas directly cut electricity for half a month to a month, the supply is expected to be strong, and the price of chemical raw materials is easy to rise and fall. Towards October, market demand is decreasing. However, overall, the plastics market is still dominated by positive factors, and PP is expected to show a high volatility trend in October.

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