Report Industry Investment Rating - Not provided in the content Core Viewpoints - As of the week ending December 5, PP downstream operating rate increased 0.10 percentage points to 53.93% week-on-week, remaining at a relatively low level for the same period over the years. The operating rate of plastic weaving, the main downstream of drawing, remained flat at 44.1% week-on-week, and plastic weaving orders decreased slightly week-on-week, slightly lower than the same period last year. On December 5, new maintenance devices such as the second line of the first phase of Zhongjing Petrochemical were added, and the operating rate of PP enterprises dropped to around 82%, a moderately low level. The production ratio of standard drawing decreased to around 27%. At the beginning of the month, petrochemical inventory accumulated significantly, and currently petrochemical inventory is at a relatively high level for the same period in recent years. The cost side is affected by geopolitical factors and pipeline damage, with crude oil prices oscillating at a low level. In terms of supply, a new production capacity of 400,000 tons/year from PetroChina Guangxi Petrochemical was put into operation in mid - October, and there has been a slight increase in maintenance devices recently. The downstream is at the end of the peak season, orders for plastic weaving are decreasing, and the price of BOPP film has stabilized after a decline. The market lacks large - scale centralized procurement, and the trade - off between supply and demand of PP remains unchanged overall. With no further macro - level positive news, it is expected that PP will experience weak oscillations in the near future [1] Summary by Relevant Catalogs Market Analysis - As of the week ending December 5, PP downstream operating rate increased 0.10 percentage points to 53.93% week - on - week, at a relatively low level for the same period over the years. The operating rate of plastic weaving, the main downstream of drawing, remained flat at 44.1% week - on - week, and plastic weaving orders decreased slightly week - on - week, slightly lower than the same period last year. On December 5, new maintenance devices such as the second line of the first phase of Zhongjing Petrochemical were added, and the operating rate of PP enterprises dropped to around 82%, a moderately low level. The production ratio of standard drawing decreased to around 27%. At the beginning of the month, petrochemical inventory accumulated significantly, and currently petrochemical inventory is at a relatively high level for the same period in recent years. The cost side is affected by geopolitical factors and pipeline damage, with crude oil prices oscillating at a low level. The downstream is at the end of the peak season, orders for plastic weaving are decreasing, and the price of BOPP film has stabilized after a decline. The market lacks large - scale centralized procurement, and the trade - off between supply and demand of PP remains unchanged overall. With no further macro - level positive news, it is expected that PP will experience weak oscillations in the near future [1] Futures and Spot Market Conditions - **Futures**: The PP2601 contract oscillated with reduced positions, with a minimum price of 6,361 yuan/ton, a maximum price of 6,417 yuan/ton, and finally closed at 6,382 yuan/ton, below the 20 - day moving average, with a decline of 0.39%. The open interest decreased by 9,112 lots to 459,901 lots [2] - **Spot**: Most spot prices of PP in various regions declined. Drawing was reported at 6,150 - 6,450 yuan/ton [3] Fundamental Tracking - **Supply**: On December 5, new maintenance devices such as the second line of the first phase of Zhongjing Petrochemical were added, and the operating rate of PP enterprises dropped to around 82%, a moderately low level [4] - **Demand**: As of the week ending December 5, PP downstream operating rate increased 0.10 percentage points to 53.93% week - on - week, at a relatively low level for the same period over the years. The operating rate of plastic weaving, the main downstream of drawing, remained flat at 44.1% week - on - week, and plastic weaving orders decreased slightly week - on - week, slightly lower than the same period last year [1][4] - **Inventory**: On Friday, the early petrochemical inventory decreased by 10,000 tons to 670,000 tons week - on - week, 60,000 tons higher than the same period last year. At the beginning of the month, petrochemical inventory accumulated significantly, and currently petrochemical inventory is at a relatively high level for the same period in recent years [4] - **Raw Materials**: The Brent crude oil 02 contract oscillated around $63 per barrel, and the CFR propylene price in China remained flat at $745 per ton week - on - week [4]