Report Summary 1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - Recently, polyolefins have followed the decline in crude oil. The supply - demand pattern of PP has become looser. The significant drop in propane prices has led to a recovery in PDH device profits, with the device load expected to increase and supply to gradually return. On the demand side, the downstream of PP has shown a "weak peak season" this year, with limited restocking willingness from factories. In the context of strong supply and weak demand, PP is under continuous pressure. Due to many recent disturbing factors, it is recommended to remain on the sidelines for unilateral operations [4]. 3. Summary by Relevant Catalogs 3.1 Polypropylene Price Range Forecast - The monthly price range forecast for polypropylene is 6500 - 7000, with a current 20 - day rolling volatility of 9.20% and a current volatility historical percentile (3 - year) of 11.0% [3]. 3.2 Polypropylene Hedging Strategy - **Inventory Management**: For enterprises with high finished - product inventory worried about price drops, they can short PP2601 futures with a 25% hedging ratio in the 6900 - 7000 range to lock in profits and offset production costs; also, sell PP2601C6900 call options with a 50% ratio in the 20 - 40 range to collect premiums and reduce costs [3]. - **Procurement Management**: For enterprises with low regular inventory and planning to purchase based on orders, they can buy PP2601 futures with a 50% hedging ratio in the 6500 - 6550 range to lock in procurement costs in advance; also, sell PP2601P6400 put options with a 75% ratio in the 50 - 80 range to collect premiums and reduce procurement costs, and lock in the spot purchase price if the price drops [3]. 3.3 Core Contradiction - Polyolefins have declined with crude oil. The supply - demand of PP has become looser. Propane price drops have increased PDH profits, reducing unexpected shutdowns and increasing device loads. Downstream demand has shown a "weak peak season", with limited restocking and short - lived speculative restocking, so demand support is insufficient. Due to many disturbing factors, it is recommended to wait and see for unilateral operations [4]. 3.4利多解读 (Likely a typo, should be "Positive Factors Analysis") - Currently, there is a lack of positive support [5]. 3.5利空解读 (Negative Factors Analysis) - The CP price of propane dropped significantly during the National Day, causing PP to lose cost support; the peak - season demand recovery has been slow, showing a "weak peak season"; exports have weakened seasonally and the export window is currently closed; a 400,000 - ton device of Guangxi Petrochemical started operation this week [8]. 3.6 Polypropylene Daily Report Table - **Futures Prices and Spreads**: On October 17, 2025, the main basis of polypropylene was - 71 yuan/ton, with a daily increase of 37 yuan/ton and a weekly decrease of 59 yuan/ton. PP01, PP05, and PP09 contracts all declined compared to the previous day and week [9]. - **Spot Prices and Regional Spreads**: Spot prices in North China, East China, and South China all decreased compared to the previous day and week. The regional spreads between East China - North China and East China - South China also changed [9]. - **Non - standard and Standard Product Spreads**: The spreads between various non - standard products and standard products (拉丝) all increased by 20 yuan/ton compared to the previous day, with different weekly increases [9]. - **Upstream Prices and Processing Profits**: Brent crude oil prices remained unchanged on the day but decreased weekly. US propane prices decreased. The processing profits of different production methods of PP changed, with some showing an improvement [9].