PP Inventory Grew amid Insipid Deals
1. China Total PP Inventory Up
According to SCI, China’s PP inventory on February 8, 2024 rose by 10.61% from January 26. Therein, the PP inventory at major PP producers, sample traders and sample ports leveled up.
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 Up
The PP producer inventory increased by 10.66% W-O-W this week. The operating rate at PP producers was still below 80% amid intensive unit maintenance and operating load reduction. PP supply increased slowly, alleviating the inventory pressure. However, downstream processors partly entered the holiday this week, dragging down the overall downstream industry operating rate. Softer demand led to a tepid trading atmosphere in the PP market, especially in the second half of this week. Traders also stockpiled limitedly amid a dearth of confidence about the PP market. Generally, the PP producer inventory grew this week.
3. China PP Inventory at Sample Ports Up
On February 8, 2024, PP inventory at China’s main ports rose by 4.97% W-O-W this week amid insipid deals. Limited imports arrived in China. The PP futures prices ramped up, and feedstock costs stayed firm, underpinning the spot PP market. Overseas PP supply was not plentiful, affected by the continuous fermentation of accidents in the Red Sea and previous extreme weather in North America. China’s PP USD prices stood at a global low, and there were limited quotations from overseas suppliers. Traders and downstream users entered the holiday successively, leading to stalemated deals.
4. China PP Inventory at Sample Traders Up
On February 8, 2024, the PP inventory at sample traders piled up by 13.05% W-O-W this week. PP market prices inched up on the back of higher PP futures prices and feedstock prices. Traders purchased PP actively from producers before the Spring Festival holiday with an optimistic outlook towards the future market. However, as for demand, most of the downstream users suspended production for a holiday and gave scant inquiries, which resulted in limited deals. Generally, the PP inventory at sample traders increased.
Downstream plants entered the Spring Festival holiday successively, so the inventory at PP producers and traders accumulated. However, the inventory accumulation may not be abundant this year because PP unit operating rates were kept below 80%.
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