China PP Inventory Slid on Improved Transactions
1. China Total PP Inventory Down
According to SCI, China’s PP inventory on November 8, 2024 dropped by 11.74% from November 1. Therein, the PP inventory at major PP producers and traders declined, while that at sample ports climbed.
Remarks: PP inventory involves PP inventory at major producers (including crude oil-based and coal-based sample producers), sample ports and sample traders.
2. China PP Inventory at Major Producers Down
On November 8, 2024, the PP producer inventory dropped by 13.87% W-O-W this week. PP supply climbed this week amid less unit maintenance, increasing the inventory pressure. However, the stockpiling initiative of traders and downstream plants improved given that the PP futures and spot prices gained ground, which stemmed from higher crude oil prices and favorable economic data in China. Especially, deals based on small orders were active. Therefore, the PP producer inventory declined. The inventory pressure at producers is moderate currently.
3. China PP Inventory at Sample Ports Down
On November 8, 2024, PP inventory at China’s main ports slid slightly by 0.25% W-O-W. The number of imported goods remained largely flat, as overseas suppliers still provided limited quotations to China where PP prices stood at a global low. In terms of the export volume, it improved marginally as China’s sellers curtailed offers to promote sales. Generally, the PP inventory at ports saw a brief dip WOW.
4. China PP Inventory at Sample Traders Down
On November 8, 2024, the PP inventory at sample traders declined by 7.20% W-O-W this week. The overall PP inventory at sample traders extended decreases. Traders held a bearish stance, impacted by capacity release and softer expectations for demand with the off-season drawing near. Besides, market players worried about the tariff after the U.S. presidential election ended. Prices of commodities such as crude oil all lost ground, hampering the PP production cost and market sentiment. Traders were active in promoting sales, accelerating their inventory consumption.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
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