Report Industry Investment Rating - Not provided in the document Core Viewpoints - The fundamentals of the polypropylene market have changed little and are expected to continue to fluctuate weakly. The strategy suggests a weak and volatile mindset, guarding against callback risks, and a strategy of selling call options [1][10] Summary by Directory 1. Recent Market Main Contradictions - Not provided in the document 2. Polypropylene Supply and Demand Situation Supply - This week's production met expectations, with few new maintenance devices. In the next two weeks, device maintenance will decrease, and production may increase slightly. This week's production was 783,100 tons, an increase of 6,000 tons from last week. In the next two weeks, it is expected to reach 815,500 tons and 844,200 tons respectively. The maintenance loss this week was 155,000 tons, a decrease of 3,600 tons from last week, and it is expected to be 0 in the next two weeks [6] - In June, exports were 235,300 tons and imports were 243,300 tons, meeting expectations. The weekly average import and export volumes remained stable this week, with imports at 75,000 tons and exports at 37,500 tons [6] Demand - This week, there was a slight inventory build - up. Next week, it is expected to continue to de - stock slightly, and domestic apparent demand will slightly decline. Next week, the seasonal apparent demand is expected to be around 820,000 tons [6] - Downstream replenishment willingness has declined as downstream enterprises had replenished a lot before and are currently digesting inventory [10] 3. Polypropylene Basis and Spread Basis - The basis as a whole showed a trend of fluctuating and strengthening, with limited basis opportunities. The East China basis weakened by 20 points, the North China basis remained unchanged, and the South China basis weakened by 20 points [9] Spread - The inter - month spread fluctuated. The 1 - 5 inter - month spread decreased by 1 point, the 5 - 9 inter - month spread decreased by 2 points, and the 9 - 1 inter - month spread increased by 3 points [9] - The spread between different varieties also fluctuated. The spread between copolymer and draw decreased by 30 points, the spread between injection and draw increased by 20 points, and the spread between fiber and draw decreased by 50 points [9] - The spread between PP and 3MA strengthened. The multi - PP and short - MA strategy had previously been recommended to take profit and exit the market, and there are no suitable opportunities in the short term [9] - The LL - PP spread fluctuated this week and is expected to strengthen slightly later [9] 4. Summary and Outlook Market Outlook - The cost side fluctuated and strengthened this week, and it is expected that there will be little change in the cost side next week. The profit of upstream production processes is generally weakening, and the import profit is still inverted [7] - The upstream is in the peak maintenance period, but the overall supply is still relatively sufficient, with a focus on active shipment. The mid - stream shipment situation has slightly deteriorated, and some spot - futures arbitrageurs have an opportunity to sell after the decline in the futures price [10] Strategies - The strategy suggests a weak and volatile mindset, guarding against callback risks, and a strategy of selling call options. The multi - PP and short - MA spread strategy had previously been recommended to take profit and exit the market [10]