Report Industry Investment Rating - Not provided Core Viewpoints - PP is expected to follow the market sentiment and show a strong and volatile trend in the short - term, driven by low valuation, cold weather and the geopolitical situation in Iran, but the sustainability of the PP rebound should be treated with caution due to limited improvement in the supply - demand pattern and limited spot follow - up [1] - The L - PP spread is expected to decline as plastics have new production capacity coming on - stream recently, with a higher operating rate than PP, and the concentrated demand for plastic mulch has not yet started [1] Summary by Relevant Catalogs Market Analysis - As of the week of January 23, the downstream operating rate of PP rebounded 0.34 percentage points month - on - month to 52.87%, at a neutral level in the same lunar period over the years. The operating rate of plastic weaving, the main downstream of drawstring, dropped 0.56 percentage points month - on - month to 42.04%, and plastic weaving orders continued to decline slightly month - on - month, slightly lower than the same period last year [1] - On January 29, there were few changes in maintenance devices. The operating rate of PP enterprises remained at around 79%, at a low level, and the production ratio of standard drawstring rose to around 27.5% [1][5] - Near the end of the month, petrochemical inventory was depleted rapidly and is currently at a relatively low level in the same period in recent years. The cold weather boosted the demand for diesel for heating, alleviating demand concerns. Coupled with the escalating geopolitical situation in Iran, crude oil prices rose [1] - Recently, the number of maintenance devices increased slightly. The price of downstream BOPP film continued to rebound, but as the Spring Festival holiday approached, the operating rate of downstream plastic weaving continued to decline, and new orders were limited [1] Futures and Spot Market - Futures: The PP2605 contract increased in positions and fluctuated upward, with a minimum price of 6780 yuan/ton, a maximum price of 6898 yuan/ton, and finally closed at 6870 yuan/ton, above the 20 - day moving average, up 1.54%. The open interest increased by 13300 lots to 556684 lots [2] - Spot: Most spot prices of PP in various regions rose. Drawstring was quoted at 6400 - 6910 yuan/ton [3] Fundamental Tracking - Supply: On January 29, there were few changes in maintenance devices. The operating rate of PP enterprises remained at around 79%, at a low level, and the production ratio of standard drawstring rose to around 27.5% [5] - Demand: As of the week of January 23, the downstream operating rate of PP rebounded 0.34 percentage points month - on - month to 52.87%, at a neutral level in the same lunar period over the years. The operating rate of plastic weaving, the main downstream of drawstring, dropped 0.56 percentage points month - on - month to 42.04%, and plastic weaving orders continued to decline slightly month - on - month, slightly lower than the same period last year [5] - Inventory: On Thursday, the early petrochemical inventory increased by 2.5 tons month - on - month to 47.5 tons, 8.5 tons lower than the same lunar period last year. Near the end of the month, petrochemical inventory was depleted rapidly and is currently at a relatively low level in the same period in recent years [5] Raw Material End - Brent crude oil contract 03 rose above 69 US dollars per barrel, and the CFR propylene price in China remained flat at 820 US dollars per ton month - on - month [6]

Report Industry Investment Rating - Not provided Core Viewpoints - Low valuation, cold weather, and the Iran geopolitical situation have improved the sentiment in the chemical sector. PP will follow the market sentiment and show a strong and volatile trend in the short term. However, the improvement in the PP supply - demand pattern is limited, the spot market follow - up is limited, and the basis has declined. Caution should be exercised regarding the sustainability of the PP rebound. It is expected that the L - PP spread will decline [1]. Summary by Relevant Catalogs Market Analysis - As of the week of January 23, the downstream PP operating rate rebounded 0.34 percentage points to 52.87%, at a neutral level in the same lunar period over the years. The operating rate of plastic weaving, the main downstream of drawstring, decreased 0.56 percentage points to 42.04%, and plastic weaving orders continued to decline slightly, slightly lower than the same period last year. On January 28, new maintenance devices such as the first line of Dushanzi Petrochemical were added, and the PP enterprise operating rate dropped to around 79%, at a low level. The production ratio of standard drawstring remained at around 27%. Near the end of the month, petrochemical inventory was depleted quickly and is currently at a low level in the same period in recent years. Cold weather has boosted diesel heating demand, alleviating demand concerns, and combined with the escalating Iran geopolitical situation, crude oil prices have risen. There has been a slight increase in maintenance devices recently. The price of downstream BOPP film continued to rebound, but as the Spring Festival holiday approaches, the operating rate of downstream plastic weaving has continued to decline, and new orders are limited [1]. Futures and Spot Market - Futures: The PP2605 contract increased in positions and fluctuated upward. The lowest price was 6,697 yuan/ton, the highest was 6,808 yuan/ton, and it finally closed at 6,778 yuan/ton, above the 20 - day moving average, with a gain of 1.30%. The open interest increased by 17,453 lots to 543,384 lots [2]. - Spot: Most PP spot prices in various regions rose. Drawstring was reported at 6,400 - 6,830 yuan/ton [3]. Fundamental Tracking - Supply: On January 28, new maintenance devices such as the first line of Dushanzi Petrochemical were added, and the PP enterprise operating rate dropped to around 79%, at a low level. The production ratio of standard drawstring remained at around 27% [4]. - Demand: As of the week of January 23, the downstream PP operating rate rebounded 0.34 percentage points to 52.87%, at a neutral level in the same lunar period over the years. The operating rate of plastic weaving, the main downstream of drawstring, decreased 0.56 percentage points to 42.04%, and plastic weaving orders continued to decline slightly, slightly lower than the same period last year [4]. - Inventory: On Wednesday, the petrochemical morning inventory decreased by 40,000 tons to 450,000 tons, 110,000 tons lower than the same lunar period last year. Near the end of the month, petrochemical inventory was depleted quickly and is currently at a low level in the same period in recent years [4]. Raw Material End - Crude oil: The Brent crude oil 03 contract rose above $67 per barrel, and the CFR propylene price in China remained flat at $820 per ton [6].

【冠通期货研究报告】 【期现行情】 PP日报：低开后震荡运行 期货方面： 发布日期：2026年1月27日 PP2605合约低开后增仓震荡运行，最低价6653元/吨，最高价6728元/吨，最终收盘于6709元 /吨，在20日均线上方，涨幅0.04%。持仓量增加4800手至525931手。 【行情分析】 现货方面： 截至1月23日当周，PP下游开工率环比回升0.34个百分点至52.87%，处于历年农历同期中性水平。 其中拉丝主力下游塑编开工率环比下跌0.56个百分点至42.04%，塑编订单环比继续小幅下降，略低于 去年同期。1月27日，新增中景石化二期一线等检修装置，PP企业开工率下跌至79.5%左右，处于偏低 水平，标品拉丝生产比例下跌至27%左右。临近月底，石化去库较快，目前石化库存处于近年同期偏 低水平。成本端，寒冷天气推动柴油取暖需求，需求担忧有所缓解，加上伊朗地缘局势升温，原油 价格上涨。近期检修装置略有增加。下游BOPP膜价格继续反弹，但临近春节放假，下游塑编开工率 持续下降，其新增订单有限。低估值、寒冷天气及伊朗地缘局势推动下，化工板块情绪好转，PP短 期跟随市场情绪偏强震荡，只是PP供需格局改善有 ...

Report Industry Investment Rating - Not provided in the content Core Viewpoints - PP is expected to fluctuate within a range as the improvement in the supply - demand pattern is limited, downstream order cycles are shortened, and downstream product profits are shrinking. The L - PP spread is expected to decline due to new plastic production capacity and the non - start of concentrated demand for mulch films [1] Summary by Relevant Catalogs Market Analysis - As of the week of January 23, the downstream PP operating rate increased by 0.34 percentage points to 52.87% week - on - week, at a neutral level in the same lunar period over the years. The operating rate of the downstream plastic weaving industry of the main drawstring decreased by 0.56 percentage points to 42.04% week - on - week, and plastic weaving orders continued to decline slightly, slightly lower than the same period last year [1] - On January 23, there were few changes in maintenance devices. The PP enterprise operating rate remained at around 80%, at a slightly lower - than - neutral level, and the production ratio of standard drawstring decreased to around 28% [1][4] - Petrochemicals had good inventory reduction in the first and middle ten - days of January, but the recent inventory reduction was average. Currently, petrochemical inventory is at a neutral level in the same period in recent years [1][4] - On the cost side, the US Energy Secretary called for more than doubling global oil production, US crude oil inventories increased more than expected, and gasoline inventories also continued to increase more than expected. Overall oil product inventories continued to rise, and crude oil prices fell [1] - In terms of supply, the new production capacity of 400,000 tons/year of PetroChina Guangxi Petrochemical was put into operation in mid - October, and the number of recent maintenance devices decreased slightly. The price of downstream BOPP film continued to rebound, but as the Spring Festival holiday approached, the operating rate of the downstream plastic weaving industry continued to decline, and new orders were limited [1] Futures and Spot Market Conditions - Futures: The PP2605 contract increased in positions and fluctuated upward, with a minimum price of 6,584 yuan/ton, a maximum price of 6,687 yuan/ton, and finally closed at 6,656 yuan/ton, above the 20 - day moving average, with a gain of 1.48%. The position increased by 12,150 lots to 498,932 lots [2] - Spot: Most spot prices of PP in various regions rose. The drawstring was reported at 6,250 - 6,730 yuan/ton [3] Fundamental Tracking - Supply: On January 23, there were few changes in maintenance devices. The PP enterprise operating rate remained at around 80%, at a slightly lower - than - neutral level, and the production ratio of standard drawstring decreased to around 28% [4] - Demand: As of the week of January 23, the downstream PP operating rate increased by 0.34 percentage points to 52.87% week - on - week, at a neutral level in the same lunar period over the years. The operating rate of the downstream plastic weaving industry of the main drawstring decreased by 0.56 percentage points to 42.04% week - on - week, and plastic weaving orders continued to decline slightly, slightly lower than the same period last year [4] - Inventory: Petrochemical morning inventory on Friday decreased by 40,000 tons to 500,000 tons week - on - week, 35,000 tons higher than the same period last year. Petrochemicals had good inventory reduction in the first and middle ten - days of January, but the recent inventory reduction was average. Currently, petrochemical inventory is at a neutral level in the same period in recent years [4] - Raw materials: The Brent crude oil 03 contract fell below $65/barrel, and the CFR propylene price in China increased by $15/ton to $800/ton week - on - week [4]

Report Industry Investment Rating - Not provided Core Viewpoints - The PP market is expected to oscillate weakly due to limited improvement in the supply - demand pattern, shorter downstream order cycles, and shrinking downstream product profits. The L - PP spread is expected to decline as there are newly added plastic production capacities and decreasing agricultural film orders [1] Summary by Relevant Catalogs Market Analysis - As of the week ending January 16th, the PP downstream operating rate decreased by 0.07 percentage points to 52.53% week - on - week, at a relatively low level in the same period of previous years. The operating rate of plastic weaving, the main downstream of drawstring PP, dropped by 0.32 percentage points to 42.6%, and plastic weaving orders continued to decline slightly, slightly lower than the same period last year. On January 21st, the number of maintenance devices changed little, the PP enterprise operating rate remained around 80% (a neutral - to - low level), and the drawstring production ratio rose to around 27.5%. Petrochemical inventory reduction was good in the first and middle of January but was average recently, and the current petrochemical inventory is at a neutral level in the same period of recent years. The Iran situation has cooled, and recent crude oil prices have declined. There is a new 400,000 - ton/year production capacity from PetroChina Guangxi Petrochemical put into operation in mid - October, and the number of recent maintenance devices has slightly decreased. The price of downstream BOPP film has rebounded, but new orders for downstream plastic weaving are limited as the Spring Festival holiday approaches. The macro sentiment has faded, and the PP supply - demand pattern has limited improvement [1] Futures and Spot Market - Futures: The PP2605 contract oscillated with increasing positions, with a minimum price of 6446 yuan/ton, a maximum of 6491 yuan/ton, and finally closed at 6485 yuan/ton, above the 20 - day moving average, up 0.42%. The open interest increased by 2082 lots to 468323 lots [2] - Spot: Most spot prices of PP in various regions declined. Drawstring PP was reported at 6150 - 6610 yuan/ton [3] Fundamental Tracking - Supply: On January 21st, the number of maintenance devices changed little, the PP enterprise operating rate remained around 80% (a neutral - to - low level), and the drawstring production ratio rose to around 27.5% [4] - Demand: As of the week ending January 16th, after the New Year's Day holiday, the PP downstream operating rate decreased by 0.07 percentage points to 52.53% week - on - week, at a relatively low level in the same period of previous years. The operating rate of plastic weaving, the main downstream of drawstring PP, dropped by 0.32 percentage points to 42.6%, and plastic weaving orders continued to decline slightly, slightly lower than the same period last year [4] - Inventory: The petrochemical early - morning inventory on Wednesday decreased by 10,000 tons to 550,000 tons week - on - week, 55,000 tons higher than the same period last year. Inventory reduction was good in the first and middle of January but was average recently, and the current petrochemical inventory is at a neutral level in the same period of recent years [4] Raw Material End - Brent crude oil contract 03 rose to $64 per barrel, and the CFR propylene price in China remained flat at $785 per ton week - on - week [6]

Report Industry Investment Rating - Not provided Core Viewpoints - The PP market is expected to experience a weakening oscillatory trend within a certain range due to limited improvement in the supply - demand pattern, shorter downstream order cycles, and shrinking downstream product profits [1] - The L - PP price spread is expected to decline as there is new production capacity for plastics and the L开工率 is higher than that of PP, along with a continuous decline in agricultural film orders [1] Summary by Relevant Catalogs Market Analysis - As of the week of January 16, the downstream operating rate of PP decreased by 0.07 percentage points to 52.53% week - on - week, remaining at a relatively low level compared to the same period in previous years [1][4] - The operating rate of the plastic weaving industry, the main downstream of PP drawstring products, dropped by 0.32 percentage points to 42.6% week - on - week, and plastic weaving orders continued to decline slightly, slightly lower than the same period last year [1][4] - On January 20, new maintenance units such as the first and second lines of Juzhengyuan Phase I were added. The operating rate of PP enterprises decreased to around 80%, at a moderately low level, and the production ratio of standard drawstring products dropped to around 26% [1][4] - Petrochemical inventory reduction was good in the first and middle of January, but it has been average recently. Currently, petrochemical inventory is at a moderate level compared to the same period in recent years [1][4] - The cost of crude oil has decreased as the US has postponed military strikes against Iran and the situation in Iran has cooled down [1] - There is new production capacity of 400,000 tons/year from PetroChina Guangxi Petrochemical, and the number of maintenance units has slightly decreased recently [1] - The price of BOPP film in the downstream has rebounded, but with the approaching Spring Festival holiday, new orders for downstream plastic weaving are limited [1] Futures and Spot Market Conditions - The PP2605 contract decreased by 0.72% in a volatile manner, with a closing price of 6461 yuan/ton, above the 20 - day moving average. The trading volume decreased by 4253 lots to 466,241 lots [2] - Most spot prices of PP in various regions have declined, with drawstring products priced at 6240 - 6680 yuan/ton [3] Fundamental Tracking - On the supply side, on January 20, new maintenance units led to a decrease in the PP enterprise operating rate to around 80%, and the production ratio of standard drawstring products dropped to around 26% [4] - On the demand side, as of the week of January 16, the downstream operating rate of PP decreased by 0.07 percentage points to 52.53% week - on - week, and the operating rate of the plastic weaving industry dropped by 0.32 percentage points to 42.6% week - on - week [4] - Petrochemical inventory in the early morning of Tuesday was flat at 560,000 tons compared to the previous day, 40,000 tons higher than the same period last year [4] Raw Material End - The Brent crude oil 03 contract fell below 64 US dollars per barrel, and the CFR propylene price in China remained flat at 785 US dollars per ton [6]

1. Report Industry Investment Rating - Not provided 2. Core Viewpoints - PP is expected to trade in a range as its supply - demand pattern improves limitedly and downstream order cycles shorten. The L - PP spread is expected to narrow due to new plastic production capacity and a decline in agricultural film orders [1]. 3. Summary by Relevant Catalogs 3.1 Market Analysis - As of the week of January 16th, after the New Year's Day holiday, the PP downstream operating rate decreased by 0.07 percentage points to 52.53% 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 PP, dropped 0.32 percentage points to 42.6% week - on - week, and plastic weaving orders continued to decline slightly, slightly lower than the same period last year [1]. - On January 16th, there were few changes in maintenance units, and the PP enterprise operating rate remained at around 81%, a moderately low level, with the production ratio of standard drawstring PP dropping to around 24% [1][4]. - The petrochemical inventory is at a relatively low level in the same period in recent years after good destocking after the New Year's Day holiday. The cost of crude oil has declined as the situation in Iran cools down. There is new production capacity of 400,000 tons/year from PetroChina Guangxi Petrochemical, and there are slightly fewer maintenance units recently. Although the downstream BOPP film price rebounded, new orders for downstream plastic weaving are limited due to the approaching Spring Festival holiday [1]. 3.2 Futures and Spot Market Conditions - Futures: The PP2605 contract decreased with reduced positions, closing at 6496 yuan/ton, down 1.67%. The trading volume was between 6489 - 6604 yuan/ton, and the open interest decreased by 5929 lots to 485,733 lots [2]. - Spot: Most PP spot prices in various regions declined. The drawstring PP was quoted at 6240 - 6680 yuan/ton [3]. 3.3 Fundamental Tracking - Supply: On January 16th, there were few changes in maintenance units. The PP enterprise operating rate remained at around 81%, a moderately low level, and the production ratio of standard drawstring PP dropped to around 24% [4]. - Demand: As of the week of January 16th, after the New Year's Day holiday, the PP downstream operating rate decreased by 0.07 percentage points to 52.53% 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 PP, dropped 0.32 percentage points to 42.6% week - on - week, and plastic weaving orders continued to decline slightly, slightly lower than the same period last year [4]. - Inventory: The petrochemical early - morning inventory on Friday decreased by 40,000 tons to 490,000 tons week - on - week, 15,000 tons lower than the same period last year. The destocking was good after the New Year's Day holiday, and the current petrochemical inventory is at a relatively low level in the same period in recent years [4]. 3.4 Raw Material End - Brent crude oil's March contract fell below $64 per barrel, and the CFR propylene price in China remained flat week - on - week at $750 per ton [6].

1. Report's Industry Investment Rating - Not provided 2. Core Viewpoints - PP is expected to have limited upward space due to limited improvement in the supply - demand pattern and shortened downstream order cycles, despite the warm macro - atmosphere [1] - The L - PP spread is expected to decline as there is new capacity of plastics put into production recently, with a higher开工率 than PP, and the peak season of agricultural films is gradually ending [1] 3. Summary by Relevant Catalogs 3.1. Market Analysis - As of the week of January 9th, after the New Year's Day holiday, the downstream operating rate of PP decreased by 0.10 percentage points to 52.6% week - on - week, at a relatively low level in the same period of previous years. The operating rate of plastic weaving, the main downstream of drawstring, dropped by 0.22 percentage points to 42.92% week - on - week, and plastic weaving orders continued to decline slightly, slightly lower than the same period last year [1][4] - On January 14th, there were few changes in maintenance devices. The operating rate of PP enterprises remained at around 81%, at a moderately low level, and the production ratio of standard drawstring decreased to around 25% [1][4] - The inventory accumulation during this New Year's Day was not significant, and the current petrochemical inventory is at a neutral level in the same period of recent years [1][4] - Due to the continuous escalation of riots in Iran, Trump threatening to interfere again, no further progress in Russia - Ukraine negotiations, Trump passing a sanctions bill on Russia authorizing tariffs on countries importing Russian oil, the crude oil price rebounded slightly [1] - In terms of supply, the new 400,000 - ton/year capacity of PetroChina Guangxi Petrochemical was put into production in mid - October, and the number of recent maintenance devices has slightly decreased. The downstream is at the end of the peak season, orders for plastic weaving continue to decline, the price of BOPP film has dropped again, and there are limited new downstream orders approaching the Spring Festival holiday [1] - The manufacturing PMI, non - manufacturing business activity index, and comprehensive PMI output index in December all rose to the expansion range, and the Ministry of Finance has pre - issued the quotas for trade - in and "two important" projects in 2026, creating a warm macro - atmosphere that boosts market sentiment [1] 3.2. Futures and Spot Market 3.2.1. Futures - The PP2605 contract decreased in positions and fluctuated upward, with a minimum price of 6545 yuan/ton, a maximum price of 6607 yuan/ton, and finally closed at 6590 yuan/ton, above the 20 - day moving average, up 0.76%. The position volume decreased by 9082 lots to 484356 lots [2] 3.2.2. Spot - The spot prices of PP in most regions increased. The drawstring was reported at 6180 - 6680 yuan/ton [3] 3.3. Fundamental Tracking - Supply: On January 14th, there were few changes in maintenance devices. The operating rate of PP enterprises remained at around 81%, at a moderately low level, and the production ratio of standard drawstring decreased to around 25% [4] - Demand: As of the week of January 9th, after the New Year's Day holiday, the downstream operating rate of PP decreased by 0.10 percentage points to 52.6% week - on - week, at a relatively low level in the same period of previous years. The operating rate of plastic weaving, the main downstream of drawstring, dropped by 0.22 percentage points to 42.92% week - on - week, and plastic weaving orders continued to decline slightly, slightly lower than the same period last year [4] - Inventory: The petrochemical early - morning inventory on Wednesday decreased by 30,000 tons to 560,000 tons week - on - week, the same as the same period last year. The inventory accumulation during this New Year's Day was not significant, and the current petrochemical inventory is at a neutral level in the same period of recent years [4] 3.4. Raw Material End - The Brent crude oil 03 contract rose to $65 per barrel, and the CFR propylene price in China remained flat at $750 per ton week - on - week [6]

1. Report Industry Investment Rating - Not provided 2. Core Viewpoints - The PP market shows a trend of oscillating upward, but the improvement in the supply - demand pattern is limited, and the upward space is expected to be limited. The L - PP spread is expected to decline due to new capacity in the plastics industry and the end of the agricultural film peak season [1] 3. Summary by Relevant Catalogs 3.1 Market Analysis - As of the week ending January 2, the PP downstream operating rate decreased by 0.48 percentage points month - on - month to 52.76%, at a relatively low level in the same period over the years. The operating rate of plastic weaving, the main downstream of drawstring PP, dropped by 0.60 percentage points month - on - month to 43.14%, and orders continued to decline slightly, slightly lower than the same period last year [1] - On January 6, with the addition of new maintenance units such as Lihezhixin, the PP enterprise operating rate dropped to around 79%, at a relatively low level, and the production ratio of standard drawstring PP dropped to around 22% [1][4] - The inventory accumulation during the New Year's Day this year was not significant, and the current petrochemical inventory is at a neutral level in the same period in recent years [1][4] - On the cost side, due to the oversupply of crude oil, the US military's raid on Venezuela has caused geopolitical concerns, but the key oil facilities in the country are intact, and its output accounts for less than 1% of the global supply, so the crude oil price remains weak [1] - In terms of supply, the new 400,000 - ton/year capacity of PetroChina Guangxi Petrochemical was put into operation in mid - October, and the number of maintenance units has increased recently. The downstream is at the end of the peak season, orders for plastic weaving continue to decline, the price of BOPP film has dropped again, and there is a lack of large - scale centralized procurement in the market, which has limited support for the market [1] - In December, China's manufacturing PMI, non - manufacturing business activity index, and comprehensive PMI output index all rose to the expansion range, boosting market sentiment, but the improvement in the PP supply - demand pattern is limited, and the downstream order cycle is shortened [1] 3.2 Futures and Spot Market Conditions Futures - The PP2605 contract increased in positions and oscillated upward, with a minimum price of 6,345 yuan/ton, a maximum price of 6,439 yuan/ton, and finally closed at 6,423 yuan/ton, above the 20 - day moving average, with a gain of 1.09%. The open interest increased by 13,147 lots to 521,569 lots [2] Spot - The spot prices of PP in different regions showed mixed trends. The drawstring PP was quoted at 6,000 - 6,430 yuan/ton [3] 3.3 Fundamental Tracking Supply - On January 6, with the addition of new maintenance units such as Lihezhixin, the PP enterprise operating rate dropped to around 79%, at a relatively low level, and the production ratio of standard drawstring PP dropped to around 22% [4] Demand - As of the week ending January 2, the PP downstream operating rate decreased by 0.48 percentage points month - on - month to 52.76%, at a relatively low level in the same period over the years. The operating rate of plastic weaving, the main downstream of drawstring PP, dropped by 0.60 percentage points month - on - month to 43.14%, and orders continued to decline slightly, slightly lower than the same period last year [4] Inventory - On Tuesday, the early petrochemical inventory decreased by 10,000 tons month - on - month to 660,000 tons, 60,000 tons higher than the same period last year. The inventory accumulation during the New Year's Day this year was not significant, and the current petrochemical inventory is at a neutral level in the same period in recent years [4] 3.4 Raw Material End - The Brent crude oil 03 contract rose to $62 per barrel, and the CIF China price of propylene remained flat month - on - month at $740 per ton [6]

Report Industry Investment Rating No relevant content provided. Core View of the Report - PP is expected to operate in a volatile manner, with limited upside potential due to an overall unchanged supply - demand pattern, a decrease in downstream orders, and high inventory levels. The L - PP spread is expected to decline as new plastic production capacity comes online and the peak season for agricultural films ends [1]. Summary by Related Catalogs Market Analysis - As of the week ending December 26, the PP downstream operating rate decreased by 0.56 percentage points to 53.24% week - on - week, at a relatively low level compared to the same period in previous years. The operating rate of plastic weaving, the main downstream of PP raffia, dropped by 0.26 percentage points to 43.74% week - on - week, and orders continued to decline slightly, slightly lower than the same period last year [1]. - On December 31, there were few changes in maintenance devices. The PP enterprise operating rate remained at around 82%, at a moderately low level, and the production ratio of standard raffia remained at around 27.5%. Petrochemical inventory is at a relatively high level compared to the same period in recent years, with significant pressure [1][4]. - On the cost side, due to oversupply in the crude oil market and geopolitical tensions, the rebound of crude oil prices is limited. New production capacity of 400,000 tons/year from PetroChina Guangxi Petrochemical was put into operation in mid - October, and there have been few changes in maintenance devices recently [1]. - The downstream is at the end of the peak season, orders for plastic weaving and other products continue to decline, the price of BOPP film has fallen again, and the lack of large - scale centralized procurement in the market has limited the boost to the market [1]. - China's manufacturing PMI, non - manufacturing business activity index, and composite PMI output index in December all rose to the expansion range, which boosted market sentiment, but the overall supply - demand pattern of PP remains unchanged [1]. Futures and Spot Market Conditions - Futures: The PP2605 contract decreased in positions and operated in a volatile manner, with a minimum price of 6326 yuan/ton, a maximum price of 6375 yuan/ton, and finally closed at 6348 yuan/ton, above the 20 - day moving average, with a gain of 0.67%. The open interest decreased by 33,492 lots to 507,887 lots [2]. - Spot: PP spot prices in various regions partially increased, with raffia priced at 5920 - 6330 yuan/ton [3]. Fundamental Tracking - Supply: On December 31, there were few changes in maintenance devices. The PP enterprise operating rate remained at around 82%, at a moderately low level, and the production ratio of standard raffia remained at around 27.5% [1][4]. - Demand: As of the week ending December 26, the PP downstream operating rate decreased by 0.56 percentage points to 53.24% week - on - week, at a relatively low level compared to the same period in previous years. The operating rate of plastic weaving, the main downstream of PP raffia, dropped by 0.26 percentage points to 43.74% week - on - week, and orders continued to decline slightly, slightly lower than the same period last year [1][4]. - Inventory: On Wednesday, the petrochemical morning inventory increased by 30,000 tons week - on - week to 630,000 tons, 110,000 tons higher than the same period last year. Petrochemical inventory is at a relatively high level compared to the same period in recent years [4]. Raw Material End - Brent crude oil's 03 contract fell below $62 per barrel, and the CFR propylene price in China remained flat week - on - week at $740 per ton [6].