Report Summary 1. Report Industry Investment Rating - The report does not provide an industry investment rating [1][2][3] 2. Core View - The PP trend is weak, but one should be cautious when short - selling at low levels. The cost side has been weak recently, and the demand side lacks obvious highlights. The market terminal suffers from over - capacity and great foreign trade uncertainties, leading to a weakening of export products. The domestic rigid - demand start - up has slightly increased, with active low - level procurement and cautious high - level procurement. The supply pressure has further increased due to profit repair from cost reduction and the implementation of new production capacity expansion. However, there is still great uncertainty on the cost side, and one should be vigilant at the annual low levels, especially considering the recent strengthening of the monthly spread driving market fluctuations [1][2] 3. Summary by Relevant Catalogs 3.1 Fundamental Tracking - **Futures Data**: The closing price of PP2601 yesterday was 7084, with a daily decline of 0.14%. The trading volume was 175,405, and the open interest increased by 12,810. The basis of the 01 contract was - 104 (compared with - 85 the previous day), and the 01 - 05 contract spread was 4 (compared with - 2 the previous day) [1] - **Spot Price**: In the North China region, the spot price was 6900 - 7030 yuan/ton (6920 - 7070 yuan/ton the previous day); in the East China region, it was 6980 - 7110 yuan/ton (7000 - 7130 yuan/ton the previous day); in the South China region, it was 6920 - 7130 yuan/ton (6930 - 7130 yuan/ton the previous day) [1] 3.2 Spot News - Last Friday, the domestic PP market declined slightly, with a decline of 10 - 30 yuan/ton. The weak intraday futures trading dragged down the spot market sentiment. Traders were generally in a wait - and - see mood. Coupled with the partial reduction of upstream petrochemical factory prices, the offers of traders in the market were mainly weakly adjusted. Near the weekend, the enthusiasm of downstream buyers to enter the market was average, and their willingness to take delivery was not strong, resulting in a dull market transaction [2] 3.3 Market Condition Analysis - The cost side has been continuously weak, and the demand side has no obvious highlights. The market terminal is restricted by over - capacity and faces great foreign trade uncertainties, leading to a weakening of export products. The domestic rigid - demand start - up has slightly increased. The market has been characterized by active low - level procurement and cautious high - level procurement throughout the year. On the supply side, the supply pressure has further increased due to profit repair from cost reduction and the implementation of new production capacity expansion. However, there is still great uncertainty on the cost side, and one should be vigilant at the annual low levels, especially considering the recent strengthening of the monthly spread driving market fluctuations [2] 3.4 Trend Intensity - The PP trend intensity is 0, with the range of trend intensity values being integers in the [-2, 2] interval. The strength levels are classified as weak, weakly - weak, neutral, weakly - strong, and strong, where - 2 represents the most bearish and 2 represents the most bullish [3]

Report Industry Investment Rating - Not provided Core View of the Report - The current trend of the PP market remains weak, but due to the high uncertainty of the cost - end and policy directions, short - term short - selling at low levels requires caution [2] Summary by Relevant Catalogs Fundamental Tracking - **Futures Data**: The closing price of PP2509 yesterday was 7062, with a daily decline of 0.17%. The trading volume was 143,578 and the open interest decreased by 16,581. The 09 - contract basis was - 62 (compared to - 75 the previous day), and the 09 - 01 contract spread was - 29 (compared to - 31 the previous day) [1] - **Spot Price**: The spot price of PP in North China was 6900 - 7050 yuan/ton (compared to 6920 - 7050 yuan/ton the previous day), in East China was 7000 - 7130 yuan/ton (unchanged from the previous day), and in South China was 6950 - 7140 yuan/ton (compared to 6950 - 7130 yuan/ton the previous day) [1] Spot News - The domestic PP market price was narrowly adjusted. The weak oscillation of PP futures had little boost to the spot market. Most factory prices of production enterprises remained stable. Due to cost considerations, the quotations of traders changed little. Near the weekend, downstream buyers were mostly cautious and their inquiry enthusiasm was low, resulting in low trading volume [2] Market Condition Analysis - The cost side of PP has been continuously weak recently, and there are no obvious highlights on the demand side. The market terminal is limited by over - capacity and faces great foreign trade uncertainties in demand, leading to a weakening of export products and poor domestic downstream demand. The supply pressure has further increased with the profit repair from the collapse of the cost side and the implementation of new production capacity expansion. However, there is still high uncertainty in the cost side, and policies are against deflation and involution, so caution is needed at the annual low, especially when the market is oscillating due to the weakening of the monthly spread recently [2] Trend Intensity - The trend intensity of PP is 0, indicating a neutral trend [3]