PP Inventory Falls on Lower Output and Passable Rigid Demand
1. China Total PP Inventory Dropped
According to SCI, China’s PP inventory on November 17, 2023 dropped by 2.53% from November 10. Therein, the PP inventory at major PP producers, sample traders and sample ports moved downwards.
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 Declined
The PP producer inventory decreased by 2.19% W-O-W in the week ended November 17. Therein, PP inventory at major crude oil-based PP producers edged down, while that at coal-based PP producers inched up. China’s PP output slid this week with more unit maintenance, contributing to the inventory consumption. However, downstream processors mainly purchased low-priced resources to cover rigid demand because their fresh orders and profitability remained soft. Therefore, the PP producer inventory consumption was slow. At present, the PP inventory at producers stands at a medium-to-high level.
3. China PP Inventory at Sample Ports Fell
On November 17, 2023, PP inventory at China’s main ports declined by 2.19% W-O-W on moderate low-priced dealings. The arrivals of imported cargoes remained immobile. Mixed futures prices buoyed spot PP prices narrowly. The arbitrage economics remained unworkable in the import market, and overseas suppliers still preferred to sell goods to other regions instead of China for more gains. Traders were wary about buying and purchased low-priced imported resources moderately, impacted by limited fresh orders.
4. China PP Inventory at Sample Traders Inched Lower
On November 17, 2023, the PP inventory at sample traders shed 4.94% W-O-W this week. The PP inventory at sample traders trended flat-to-dipping this week. The PP futures prices climbed most of the time, bolstering the domestic market atmosphere somewhat. PP supply was not plentiful as several units underwent maintenance. Traders were active in promoting sales even by cutting selling prices. As for demand, downstream and end users mostly purchased moderate quantities of feedstock at low prices, leading to a slight dip in traders’ inventory.
PP supply doesn’t change a lot this week, while downstream processors still purchase low-priced goods to cover rigid demand, as they face scant new orders and poor profits. As a result, the flow of resources from upstream market to downstream market is slow. In other words, the PP inventory consumption at producers is slow at present. Players may continue to feel pressure in inventory.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
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