Core Viewpoint - The domestic PP market has stabilized at a low price level by the end of December, with a slight recovery in prices, but overall support from fundamentals remains limited [1][8]. Price Trends - As of December 31, the benchmark price for PP filament is reported at 6170.00 CNY/ton, reflecting a year-on-year change of -3.04% [1]. Raw Materials - Concerns over excess oil supply due to OPEC+'s new production plans have affected market sentiment. Recent holiday-related demand has led to fluctuations in oil prices. Propylene prices reached a temporary high mid-month but have since declined due to recovering supply. Propane prices remain strong due to high external market prices [4]. Supply Side - By the end of December, domestic PP enterprises have balanced restarts and maintenance, with an overall operating rate slightly increasing to around 77%. Weekly total production exceeds 790,000 tons, with inventory levels also around 790,000 tons, indicating ample supply. However, there are multiple maintenance plans announced for January, leading to expectations of a decrease in production [5]. Demand Side - Year-end economic meetings released neutral information, failing to meet market expectations and providing limited support to market sentiment. E-commerce has driven some demand for packaging and home appliances, but overall market trading atmosphere remains weak. The impact of the Federal Reserve's interest rate cuts is still felt, affecting export of end products and leading to suboptimal operating rates for downstream enterprises. Current market heat for PP end products is average, with slow raw material digestion [6]. Market Outlook - The domestic PP market is expected to enter an adjustment phase, with high production levels and limited improvement in consumption. The overall supply remains ample, but previous destocking actions by petrochemical companies have stimulated some buying interest at lower prices [8].

Group 1 - Gold exhibited a strong performance with a rebound after a dip, aligning with market expectations, influenced by Trump's comments and mixed U.S. data [1] - Trump's remarks about the Federal Reserve's leadership and potential rate cuts have heightened expectations for earlier rate reductions, providing support for gold [1] - Technical resistance levels for gold are noted at 3400/3403, with a trading strategy suggested to short initially and then consider long positions upon stabilization [1] Group 2 - OPEC+ announced a significant production increase in September, raising concerns about oversupply in the oil market [3] - Weak fuel demand data from the U.S. has compounded worries about supply exceeding demand, leading to a bearish outlook for oil prices [3] - A trading strategy for oil suggests maintaining a short position on rebounds, with recent price movements confirming this approach [3]