Sinopec Economics: The polypropylene market is expected to remain in a slight upward trend before the end of March.

In March, during the first half of the month, downstream factories gradually resumed work and production, with the operating load rate increasing. Driven by the macro atmosphere and a fear of rising prices, there was a significant phase of replenishment at the beginning of the month, leading to a noticeable increase in market volume. However, since the middle to late part of the month, with raw material prices continuing to rise and the transmission of downstream product prices being limited, the pace of raw material procurement has slowed down due to significantly increased purchasing costs and compressed profits. The focus has shifted to digesting previous stock, and there have even been reports from some factories of halting sales of raw materials, which has restricted market transactions due to reduced demand. On the export side, however, recent export profits have been significant, and the export market is performing well, providing some support to the market from external demand. Overall, since March, increased geopolitical disturbances, rising costs, and reduced supply have driven the PP market to rise sharply, with a clear upward shift in focus. Looking ahead, although downstream demand is slowing down, limiting market transaction performance, support from the cost side is expected to remain strong. Additionally, tightening supply will provide strong support to the market, and with the positive export market, it is expected that the market may continue to maintain a slight upward trend before the end of March. (Zhongchuang Information)