Analysis of the trend of domestic polypropylene market

As reported, during the week spanning from November 26 to November 30, 2012, the domestic polypropylene market showed signs of weakness, with certain regions experiencing slight declines. First, let's look at the manufacturers' activity. At present, there are very few maintenance plans among petrochemical producers. Both Tianjin Dagang and Datang Duolun remain under maintenance. The majority of facilities are operating normally, which has kept the supply at the site mainly influenced by production levels. Overall, supplies appear to be fairly adequate. Petrochemical companies have been adjusting their pricing policies frequently, resulting in some regions experiencing a revaluation of up to RMB 400 per ton. Downstream demand has been sluggish, leading to a rush by petrochemical firms to clear inventories as the year comes to an end. Random shipments have become increasingly common. Moving on to the market trends for this week, the market remains weak with minor declines observed in certain areas. Key factors influencing this include the recent volatility in international crude oil prices, which have led to a negative market sentiment. The global economic outlook remains cautious, with foreign trade deals being significantly impacted. The fiscal cliff in the U.S. continues to pose a major challenge, increasing market risks. The ongoing debt crisis within the European Union has yet to show any signs of improvement. These factors have left businesses feeling more pessimistic about the future. Domestically, as the year draws to a close, petrochemical companies are eager to clear their stockpiles. Traders are observing a pronounced bearish trend, with low warehouse holdings becoming the norm. Downstream factories are also in a cautious mood, and purchasing activities are largely on an as-needed basis. The overall trading atmosphere remains subdued. With the new administration recently assuming office, there have been no immediate signs of economic stimulus measures, making it unlikely that the market will recover significantly before year-end. Looking ahead to the market outlook, the current inventory pressure faced by petrochemical companies remains high. Taking into account the general merchandise available, the price policy for December is expected to struggle to exhibit any bullish tendencies. The market's inclination toward consolidation is strong, compounded by weak downstream demand. Business social analyst Xue Jinlei anticipates that the market will continue its weak adjustments in the coming week, with downside potential ranging between 50 to 100 yuan. In summary, while the domestic polypropylene market faces numerous challenges, including fluctuating global economic conditions and persistent inventory pressures, analysts remain hopeful that a gradual recovery may emerge in the longer term, contingent upon stabilizing international markets and the introduction of supportive economic policies.