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]

Core Viewpoint - The export profits of polypropylene (PP) are being compressed due to rising near-sea freight rates and a strengthening RMB, leading to limited growth in export volumes expected for November and December [1][9]. Group 1: Export Volume and Pricing - Domestic suppliers are continuously lowering offshore quotes to stimulate foreign demand, but rising near-sea freight rates and a stronger RMB are limiting the completion of export orders, with expected export volume for November and December remaining between 250,000 to 280,000 tons [1][9]. - Southeast Asia is the main destination for China's PP exports, with Vietnam, Indonesia, Thailand, and the Philippines accounting for 32.33% of the total export volume. However, the export volume has been declining due to reduced overseas maintenance and insufficient demand during the peak season, with a total of 777,100 tons exported in Q3, a 6.56% decrease quarter-on-quarter [2][9]. Group 2: Freight Rates and Market Conditions - In Q3, the shipping market was weak due to uncertainties surrounding US-China tariffs and a lack of demand, leading to delayed shipping times. However, entering Q4, the near-sea freight rates, particularly in Asia, have increased significantly due to pre-Spring Festival shipping demand, with rates rising to a nearly 10-month high of $540/TEU, a 31.39% increase from mid-October [4][9]. - The increase in near-sea freight rates is putting pressure on export profits, becoming a key variable affecting export orders [4][9]. Group 3: Currency Impact - The RMB has strengthened against the USD, with the exchange rate surpassing 7.10, reaching 7.0796 on November 26, the highest level since November 2024. This appreciation is partly driven by market expectations of potential interest rate cuts by the Federal Reserve [6][7]. - A stronger RMB negatively impacts export companies as it reduces the profit margins when converting USD payments into RMB, thereby limiting the negotiation of some export orders [6][7].

1. Report Industry Investment Rating - Unilateral: Neutral; LL and PP 01 - 05 spread trading: Sell high and buy back; 05 - 09 spread trading: Buy low and sell high; Cross - variety: None [3] 2. Core View of the Report - The supply - demand weakness restricts the rebound space of the polyolefin market. For PE, the supply is abundant while the demand is in the off - season, resulting in a limited short - term rebound. For PP, the weak supply - demand situation persists in the short term, and the expected rebound height of the futures price is limited [1][2][3] 3. Summary by Relevant Catalog 3.1 Market News and Important Data - **Price and Basis**: The closing price of the L main contract is 6,831 yuan/ton (+28), and that of the PP main contract is 6,410 yuan/ton (+13). The LL spot prices in North China and East China are 6,750 yuan/ton (+0) and 6,880 yuan/ton (+0) respectively. The PP spot price in East China is 6,350 yuan/ton (+0). The LL basis in North China is - 81 yuan/ton (-28), in East China is 49 yuan/ton (-28), and the PP basis in East China is - 60 yuan/ton (-13) [1] - **Upstream Supply**: The PE operating rate is 84.5% (+1.8%), and the PP operating rate is 78.1% (-0.1%) [1] - **Production Profit**: The PE oil - based production profit is 316.1 yuan/ton (+4.5), the PP oil - based production profit is - 453.9 yuan/ton (+4.5), and the PDH - based PP production profit is - 596.6 yuan/ton (-35.0) [1] - **Imports and Exports**: The LL import profit is 44.1 yuan/ton (+3.0), the PP import profit is - 230.6 yuan/ton (+2.9), and the PP export profit is - 22.4 US dollars/ton (-0.4) [1] - **Downstream Demand**: The PE downstream agricultural film operating rate is 49.0% (-0.9%), the PE downstream packaging film operating rate is 50.7% (-0.2%), the PP downstream plastic weaving operating rate is 44.1% (-0.1%), and the PP downstream BOPP film operating rate is 62.6% (+0.0%) [1] 3.2 Market Analysis - **PE**: In the first half of 2026, the domestic PE production capacity expansion slows down significantly. The supply pressure mainly comes from the high output of existing plants. The supply is continuously abundant, while the downstream demand is entering the off - season, and the inventory - clearing pressure is large. The overall downstream demand shows a downward trend, and the cost support is relatively limited. The short - term rebound space of plastics is limited [2] - **PP**: The weak supply - demand situation persists in the short term, and the basis continues to fluctuate at a low level. The supply pressure mainly comes from existing plants. The downstream overall operating rate is expected to weaken gradually, and the demand follow - up is insufficient. The expected rebound height of the futures price is limited, and attention should be paid to the cost - end disturbances [3]

Core Viewpoint - The company Wankai New Materials has signed an agreement with French company Carbios to establish a joint venture in China for a biocatalytic PET recycling project, with a total investment of approximately 922 million yuan [1] Group 1: Joint Venture Details - The joint venture will focus on a project that processes 50,000 tons of waste annually [1] - Wankai New Materials will contribute 70% of the investment, while Carbios will contribute 30% [1] - The project aims to promote the industrialization of post-consumer PET recycling [1] Group 2: Strategic Implications - Carbios is recognized as one of the most innovative bioplastics technology companies in France and a leader in biocatalytic plastic recycling technology [1] - Wankai New Materials plans to increase its investment in Carbios to secure a seat on its board [1] - The initiative is expected to establish Wankai New Materials' competitive advantage in the recycled PET sector [1]

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report The supply pressure of polyolefins remains high, with new production capacities being put into operation. The downstream is entering the end of the peak season, and the peak - season performance is below expectations. The demand in the north is decreasing, and the follow - up of orders is limited. The cost support from crude oil is weak. Although there is some boost from the anti - disorderly competition policy, the overall supply - demand pattern of plastics remains unchanged, and polyolefins have insufficient upward momentum. It is expected that the upward space of polyolefins in December is limited. Attention should be paid to the anti - involution policy. [3] 3. Summary by Relevant Catalogs 3.1. Market Analysis - The plastic operating rate has dropped to around 88%, at a neutral level, and the PP enterprise operating rate remains at around 83%, at a slightly low - neutral level. New production capacities such as ExxonMobil (Huizhou) LDPE, PetroChina Guangxi Petrochemical HDPE, and PP have been put into operation, and more are expected in December. [3] - As of the week of November 28, the PE downstream operating rate decreased by 0.39 percentage points to 44.3%, and the PP downstream operating rate increased by 0.26 percentage points to 53.83%. However, the plastic - braiding operating rate of the PP drawing downstream decreased by 0.14 percentage points to 44.1%. [3] - In November, the destocking of petrochemicals slowed down, and the current petrochemical inventory is at a slightly high - neutral level in recent years. The cost support from crude oil is limited, and it is expected that the downstream operating rate will decline in the future. [3] 3.2. Market Review - In late November, the decline of the spot price was greater than that of the futures price, and the basis of plastics decreased but remained at a slightly low - neutral level. The PP basis continued to decline slightly and was at a low level. [15][20] 3.3. Plastic Production - In October 2025, the PE maintenance volume decreased by 14.29% month - on - month to 45.63 million tons, and the PE production increased by 6.54% month - on - month to 2.8836 million tons, reaching a record high. [24] - In October 2025, the PP maintenance volume increased by 2.47% month - on - month to 776,100 tons, and the PP production increased by 4.63% month - on - month to 3.5038 million tons, also reaching a record high. [32] 3.4. Plastic Operating Rate - In October 2025, the PE operating rate increased by 1.58 percentage points to 82.01%. Recently, the plastic operating rate has dropped to around 88%. [28] - In October 2025, the PP operating rate increased by 0.94 percentage points to 77.26%. Recently, the PP enterprise operating rate remains at around 83%. [36] 3.5. PE and PP Imports and Exports - In October 2025, China's PE imports were 1.0112 million tons, a year - on - year decrease of 16.23%, and exports were 83,300 tons, a year - on - year increase of 35.42%. The net imports decreased by 18.99% year - on - year. [43] - In October 2025, China's PP imports were 273,100 tons, a year - on - year decrease of 12.16%, and exports were 235,100 tons, a year - on - year increase of 18.62%. It is expected that PP net imports will decline. [49] 3.6. Polyolefin Downstream - From January to October 2025, the cumulative production of plastic products was 65.573 million tons, a year - on - year increase of 0.5%, and the export amount was 614.55 billion yuan, a year - on - year increase of - 1.0%. [53] - As of the week of November 28, the PE downstream operating rate decreased, and the PP downstream operating rate increased slightly, but the plastic - braiding operating rate of the PP drawing downstream decreased. [57] 3.7. Polyolefin Inventory As of November 28, the petrochemical early - morning inventory was flat at 650,000 tons compared with the previous period, and was 70,000 tons higher than the same period last year. The destocking of petrochemicals slowed down in November, and the inventory is at a slightly high - neutral level in recent years. [61] 3.8. Polyolefin Profit In November, the profits of all processes of LLDPE and PP were in the red. Except for a slight increase in the profit of methanol - made LLDPE and PP, the profits of other processes declined. [65]

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - This week's view on PE is that the decline in price has not significantly compressed the valuation, monomers have rebounded slightly, and there are expectations of increased supply and decreased demand. The overall supply of PE is loose, with a 16% growth in total effective production capacity and an 18% increase in domestic production. Although imports have declined year - on - year, the ample supply is suppressing prices. The total PE operating rate is 84.5% (+1.8%). [6] - On the demand side, the operating rate of the agricultural film industry has started to decline, and orders are mostly coming to an end. The packaging film market has limited support from the e - commerce festival, and the operating rates of PE packaging film, PE pipes, and PE hollow products have all decreased. [7] - The cost - end support for PE is average. The downstream agricultural film and packaging film industries have strong rigid demand support, but considering the decline in the agricultural film operating rate and the increasing supply pressure at the end of the year, the market supply - demand pattern is not optimistic. Q4 may gradually enter a pattern of increasing supply and decreasing demand, putting pressure on prices. [8] - Valuation shows that production profits are generally compressed, and the valuation compression in the monomer segment is the most obvious. The profit margins of MTO and ethylene - purchasing processes have slightly declined. In terms of trading strategies, it is recommended to take a short position on rebounds for single - sided trading, with the 01 contract having an upper pressure level of 6900 and 7000 and a lower support level of 6750. Cross - period and cross - variety trading are not recommended for now. [8] 3. Summary by Relevant Catalogs 3.1 Polyethylene Spread and Profit - **Price and Spread**: The futures price has declined, the basis in East and South China is relatively strong, and the basis in North China has gradually recovered. The monthly spread is oscillating at a low level. The Chinese CIF price has dropped by $5 - 10. The US market has stopped falling and stabilized, with low - pressure injection molding being weak; the European LD market has recovered, and the high - pressure price in Southeast Asia is relatively high. [18][25] - **Basis/Monthly Spread**: The basis has been significantly repaired, and the North China market has returned to a slight premium. However, after the futures price rebounded, the basis could not keep up, and the monthly spread weakened again at a low level. [8] - **Import Profit**: The import window is open, the non - standard import profit is at a neutral level year - on - year, and the LD import profit is at a relatively high level this year. Overseas markets are still expected to destock at the end of the year, and imports may remain at a certain scale. [32] - **Non - standard Spread**: The production of HD film is relatively low, the supply is tight, and the non - standard spread is high. In November, it attracted some petrochemical companies to switch production, and supply pressure may be realized in the middle and late months. LD has also started to weaken month - on - month recently. [35] - **Upstream Prices**: Crude oil is oscillating at a low level, naphtha is moving sideways, ethylene has rebounded after a decline, and coal prices are relatively strong. [40] - **PE Production Profit**: Overall profits are compressed, and the valuation compression in the monomer segment is the most obvious. The profit margins of MTO and ethylene - purchasing processes have slightly declined. [46] 3.2 Polyethylene Supply and Demand - **New Production Capacity**: From the end of 2024 to the first half of 2025, standard products were intensively put into production, with a nominal production capacity growth rate of 19.2% and an effective production capacity growth rate of 16.7%. Before the 2605 contract, there will be limited new capacity put into production. Attention should be paid to the commissioning progress of Huajin and Zhongsha Gulei refineries. [50] - **Existing Operating Rate**: From the end of 2024 to the first half of 2025, the production capacity base increased, and the total supply increment was obvious. The operating rate is at a neutral level, and the maintenance volume is currently the same as last year. [51] - **Standard Product Supply**: The production capacity of LLD has been intensively put into operation, and the production ratio is at a neutral level. The maintenance in December is expected to be lower than that in November, and supply is expected to increase. [54] - **Maintenance Plan**: The scale of subsequent maintenance is expected to decline, and the monthly maintenance volume in Q4 is currently lower than the same period last year. [56] - **Imports and Exports**: Domestic production has increased significantly, and imports are at a low level year - on - year. In October, some shipments were delayed due to poor transportation turnover, and Iranian imports may increase in November. From December to January next year, overseas petrochemical maintenance will decrease, and supply will increase. The US inventory clearance pressure has been partially relieved, and imports will remain at a relatively high level. Standard product imports are at a low level, and LD imports are the same as last year. Imports from the US and Southeast Asia have decreased year - on - year. In October, imports from Saudi Arabia and the UAE in the Middle East increased slightly. [59][62][65] - **Inventory**: Supply is gradually increasing, upstream companies are actively destocking, and some downstream companies have placed orders at low prices. The inventory of standard and non - standard products at factories continues to decline, and upstream companies are actively selling at reduced prices. The middle and downstream are mainly digesting their previous inventories. [67][70] - **Downstream Demand**: The operating rate of the agricultural film industry has maintained a high level but has weakened this week. The operating rate of the packaging industry is the same as last year, and the enthusiasm for raw material stocking is limited in the downward market. The industry profit is at a high level, but orders are slightly lower year - on - year. The demand for PE pipes has slightly improved in Q4, and the raw material inventory is slightly lower year - on - year. Overall, downstream demand shows signs of marginal decline. [72][79][86][89]

聚丙烯：短期反弹，中期趋势仍偏弱 观点综述 1 本周PP观点：短期反弹，中期趋势仍偏弱 | | 本周国内聚丙烯产量80.68万吨，相较上周的80.83万吨减少0.15万吨，跌幅0.19%；相较去年同期的67.4万吨增加13.28万吨，涨幅19.7%。 | | --- | --- | | | 周内赛科、大港石化及巨正源等装置恢复开工，但上海石化、茂名石化等装置停车检修，聚丙烯损失量量数据窄幅走高，受此影响，产量 | | | 数据小幅下滑。 | | | 周产能利用率变化分析：本期聚丙烯平均产能利用率78.14%，环比下降0.14%；中石化产能利用率79.65%，环比下降1.59%。周内茂名 | | 供应 | 石化二线30万吨/年及上海石化三线20万吨/年等装置检修，使得中石化产能利用率下降。上海赛科25万吨/年及独山子石化老二线等装置 | | | 停车，使得聚丙烯平均产能利用率下降。 | | | 下周来看，中化泉州二线35万吨/年计划检修，东莞巨正源、天津渤化等存重启计划，计划内检修损失量预期下降。计划外检修来看， | | | 丙烷/丙烯等原料价格强势，挤占下游PP生产企业利润，聚丙烯边际装置运行压力增加，关注后 ...

1. Report Industry Investment Rating - Not provided 2. Core View of the Report - The PP downstream operating rate increased by 0.26 percentage points to 53.83% week - on - week, but the operating rate of the plastic weaving industry, the main downstream of the drawstring, decreased. The 11 - month petrochemical destocking slowed down, and the current petrochemical inventory is at a moderately high level in the same period in recent years. The cost - side crude oil price fluctuates at a low level. Although the supply of new production capacity is added and the maintenance devices are slightly reduced, the downstream is at the end of the peak season, and the market lacks large - scale centralized procurement. The overall supply - demand pattern of plastics remains unchanged, and it is expected that the upward space of PP will be limited in the near future [1] 3. Summary by Relevant Catalogs 3.1 Market Analysis - The PP downstream operating rate increased by 0.26 percentage points to 53.83% week - on - week, at a low level in the same period over the years. However, the operating rate of the plastic weaving industry, the main downstream of the drawstring, decreased by 0.14 percentage points to 44.1%, and the plastic weaving orders were flat week - on - week, slightly lower than the same period last year. On November 28, the changes in maintenance devices were small, the PP enterprise operating rate remained at about 83%, at a moderately low level, and the production ratio of standard drawstring decreased to about 28%. In November, the petrochemical destocking slowed down, and the current petrochemical inventory is at a moderately high level in the same period in recent years. The crude oil price fluctuates at a low level. There is new production capacity in supply, and the maintenance devices have slightly decreased recently. The downstream is at the end of the peak season, and the market lacks large - scale centralized procurement. Although the relevant departments' research work has given some boost to bulk commodities, the overall supply - demand pattern of plastics remains unchanged, and it is expected that the upward space of PP will be limited in the near future [1] 3.2 Futures and Spot Market Futures Market - The PP2601 contract decreased in positions and fluctuated upward, with a minimum price of 6302 yuan/ton, a maximum price of 6413 yuan/ton, and finally closed at 6409 yuan/ton, below the 20 - day moving average, with a gain of 1.91%. The position volume decreased by 50,595 lots to 506,658 lots [2] Spot Market - The spot prices of PP in various regions mostly increased. The drawstring was reported at 6150 - 6480 yuan/ton [3] 3.3 Fundamental Tracking - On the supply side, on November 28, the changes in maintenance devices were small, the PP enterprise operating rate remained at about 83%, at a moderately low level, and the production ratio of standard drawstring decreased to about 28%. On the demand side, as of the week of November 28, the PP downstream operating rate increased by 0.26 percentage points to 53.83% week - on - week, at a low level in the same period over the years. However, the operating rate of the plastic weaving industry, the main downstream of the drawstring, decreased by 0.14 percentage points to 44.1%, and the plastic weaving orders were flat week - on - week, slightly lower than the same period last year. The petrochemical early - morning inventory on Friday was flat week - on - week at 650,000 tons, 70,000 tons higher than the same period last year. In November, the petrochemical destocking slowed down, and the current petrochemical inventory is at a moderately high level in the same period in recent years [4] 3.4 Raw Material End - The Brent crude oil 02 contract rose to $63/barrel, and the China CFR propylene price was flat week - on - week at $735/ton [6]

Report Summary 1. Report Industry Investment Rating - Not provided 2. Core View - Supply exceeds demand, and cost support weakens, so PP is expected to fluctuate weakly [1] 3. Summary by Relevant Catalogs 3.1 Market Analysis - PP downstream operating rate rose 0.29 percentage points to 53.57% week-on-week, at a relatively low level in the same period over the years; the operating rate of plastic weaving, the main downstream of drawstrings, remained flat at 44.24%, and plastic weaving orders decreased slightly week-on-week, slightly lower than the same period last year [1][4] - On November 27, there was little change in maintenance devices, PP enterprise operating rate remained at around 83%, at a neutral to low level, and the production ratio of standard drawstrings remained at around 31% [1][4] - Petrochemical destocking slowed down in November, and current petrochemical inventory is at a neutral to high level in the same period in recent years [1][4] - Crude oil prices declined due to the lack of impact on Russia's oil production from new sanctions and the push for a ceasefire in the Russia-Ukraine conflict [1] - A new 400,000-ton/year production capacity of PetroChina Guangxi Petrochemical was put into operation in mid-October, and there was a slight decrease in maintenance devices recently [1] 3.2 Futures and Spot Market Conditions - Futures: The PP2601 contract fluctuated with a reduction in positions, closing at 6,295 yuan/ton, down 0.03%, and the position volume decreased by 29,319 lots to 557,253 lots [2] - Spot: Most PP spot prices in various regions were stable, with drawstrings quoted at 6,150 - 6,480 yuan/ton [3] 3.3 Fundamental Tracking - Supply: On November 27, there was little change in maintenance devices, and PP enterprise operating rate remained at around 83%, at a neutral to low level [1][4] - Demand: As of the week of November 21, PP downstream operating rate rose 0.29 percentage points to 53.57% week-on-week, at a relatively low level in the same period over the years; the operating rate of plastic weaving, the main downstream of drawstrings, remained flat at 44.24%, and plastic weaving orders decreased slightly week-on-week, slightly lower than the same period last year [1][4] - Petrochemical inventory: Petrochemical early inventory on Thursday decreased by 0.5 million tons to 65 million tons week-on-week, 4.5 million tons higher than the same period last year [4] 3.4 Raw Material End - Brent crude oil's 02 contract fell below $63 per barrel, and the CFR propylene price in China remained flat at $735 per ton week-on-week [5]

1. Report Industry Investment Rating - No information provided 2. Core View of the Report - Due to supply surplus and weakened cost support, PP is expected to experience a weak and volatile trend [1] 3. Summary by Relevant Catalogs 3.1 Market Analysis - PP downstream operating rate increased by 0.29 percentage points to 53.57% week - on - week, at a relatively low level in the same period over the years. The operating rate of plastic weaving, the main downstream of drawstring, remained flat at 44.24%, with slightly fewer orders week - on - week and slightly lower than the same period last year [1] - On November 26, the restart of overhauled units such as a single line of Dagang Petrochemical drove the PP enterprise operating rate up to around 83%, at a moderately low level. The production ratio of standard drawstring remained at around 31% [1][4] - In November, the destocking of petrochemicals slowed down, and the current petrochemical inventory is at a moderately high level in the same period in recent years [1][4] - On the cost side, Russian Deputy Prime Minister Novak stated that the latest sanctions imposed by the US and the West did not affect Russia's oil production. Trump's administration is actively promoting a cease - fire between Russia and Ukraine, and Zelensky is open to peace talks, leading to a decline in crude oil prices [1] - In terms of supply, PetroChina Guangxi Petrochemical with a new production capacity of 400,000 tons/year was put into operation in mid - October, and the number of overhauled units has decreased recently. As the downstream enters the end of the peak season, the follow - up of orders for plastic weaving is limited, and the market lacks large - scale centralized procurement, which has limited support for the market. Traders generally offer discounts to stimulate transactions [1] 3.2 Futures and Spot Market Conditions Futures - The PP2601 contract decreased in positions and fluctuated downward, with a minimum price of 6,258 yuan/ton, a maximum price of 6,332 yuan/ton, and finally closed at 6,265 yuan/ton, below the 20 - day moving average, with a decline of 1.42%. The open interest decreased by 19,187 lots to 586,572 lots [2] Spot - The spot prices of PP in various regions partially declined. The drawstring was quoted at 6,150 - 6,480 yuan/ton [3] 3.3 Fundamental Tracking - Supply side: On November 26, the restart of overhauled units such as a single line of Dagang Petrochemical drove the PP enterprise operating rate up to around 83%, at a moderately low level [4] - Demand side: As of the week of November 21, the PP downstream operating rate increased by 0.29 percentage points to 53.57% week - on - week, at a relatively low level in the same period over the years. The operating rate of plastic weaving, the main downstream of drawstring, remained flat at 44.24%, with slightly fewer orders week - on - week and slightly lower than the same period last year [1][4] - Petrochemical early inventory on Wednesday decreased by 30,000 tons to 655,000 tons week - on - week, 50,000 tons higher than the same period last year. In November, the destocking of petrochemicals slowed down, and the current petrochemical inventory is at a moderately high level in the same period in recent years [4] - Raw material end - crude oil: The Brent crude oil 01 contract fell below $63 per barrel, and the CFR propylene price in China increased by $5 per ton to $735 per ton week - on - week [4]