Core Insights - The PP downstream operating rate has increased by 0.50 percentage points to 48.9%, which is still low compared to historical levels [1] - The operating rate for plastic weaving remains stable at 41.1%, with a slight decrease in orders, slightly higher than the same period in the previous two years [1] - The overall PP industry is experiencing a lack of significant policy changes, leading to minimal fluctuations in the current market [1] Supply and Demand Analysis - The operating rate of PP enterprises is maintained at around 84.5%, indicating a neutral market condition [1] - Recent maintenance activities have been minimal, and the production ratio for standard filament remains steady at approximately 30% [1] - Inventory levels are high compared to recent years, with general destocking in the petrochemical sector [1] Cost Factors - Unexpected U.S. non-farm employment data and OPEC+ production increases of 548,000 barrels per day in September are influencing cost dynamics [1] - The potential for a ceasefire in the Russia-Ukraine conflict and adjustments by EIA and IEA regarding global oil surplus have contributed to a decline in crude oil prices [1] Market Outlook - The upcoming rainy and hot season is expected to slow down downstream recovery, with plastic weaving operating rates remaining stable and new orders being limited [1] - The current market is characterized by high inventory pressure and a focus on just-in-time purchasing [1] - The PP industry is anticipated to experience a period of fluctuation, with a recommendation for a 09 - 01 reverse spread strategy [1]

Group 1 - The article emphasizes the importance of learning from international experiences in addressing industrial disorder and overcapacity, suggesting that policies encouraging mergers and acquisitions, raising industry standards, and implementing market-based clearance alongside safety net policies could be effective [8][42]. Group 2 - Japan's experience highlights the formation of cross-shareholding and mergers to create an industrial network, which helps mitigate excessive competition and enhance economies of scale. The revision of the Antimonopoly Act in 1953 and the introduction of the "New Industrial Structure Theory" in 1963 were pivotal in promoting corporate mergers [2][49]. - The shareholding of financial institutions in Japanese companies increased from 30% in 1960 to 45% in 1990, and the average cross-shareholding ratio among Japan's six major groups rose from 12% in 1962 to 18% in 1998 [2][49]. - The establishment of "Keiretsu" groups, which consist of horizontal and vertical alliances, has stabilized supply chains and reduced price wars, thereby promoting industrial upgrades [3][50]. Group 3 - The UK and US experiences demonstrate the significance of market-based clearance while ensuring social safety nets. The UK government ceased financial subsidies and gradually exited the coal price protection system in the mid-1980s, leading to the closure of about one-third of coal mines [4][51]. - In the US, the steel industry faced similar challenges, with the government eliminating tax incentives and facilitating mergers in the 1980s, resulting in a reduction of crude steel capacity by approximately 52.8 million tons from 1998 to 2003 [4][25]. - Both countries implemented various employment support measures, such as the UK's "Enterprise Allowance Scheme" and the US's Pension Benefit Guaranty Corporation (PBGC), which provided safety nets for displaced workers [5][32]. Group 4 - Germany's approach emphasizes setting high industry standards to foster differentiated competition. The Beer Purity Law established in 1516 set strict quality standards for beer production, which helped protect local industries and enhance product quality [6][37]. - The German government encourages regional styles and has established detailed certification mechanisms to ensure product authenticity and quality, promoting a diverse and competitive market [6][39]. - By aligning with international beer classification standards, Germany has guided the market towards high-quality, non-price competition, facilitating innovation and cultural positioning among breweries [6][54].