Low inventory inventory is one of the main logic bull market tight current

Low inventory inventory is one of the main logic bull market tight current. From the latest data, petrochemical stocks and port stocks fell significantly, trade business inventories continue to rise.
Because the Shenhua Xinjiang and Tianhe innovation capacity have been released, and in November Donghua energy production plan and next month no unit overhaul plan plan, market supply supply in the future will increase.
But the coal chemical enterprises affected by the cold weather and transportation resources facing the impact of certain factors such as pressure, the coal chemical supply stability is still uncertain.
The demand side, despite the current downstream demand of remarkable performance, but with the cold weather, the traditional off-season demand begins to come to the society’s ability to digest inventory downstream to the market worried about the market outlook, PP stocks have the potential to further increase.
The spot price will fall

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Propylene is the direct materials of PP production, from July to August data, propylene prices pulled straight 800 yuan / ton, propylene imports in July increased in August, has a direct relationship with this period of time the overall stock price lasheng.
With spot prices fell, the downstream demand if not relay, the possibility of a large decline in prices. With the November release of new capacity and maintenance device brought to restart the supply side to accelerate the recovery, the whole society will significantly increase the amount of inventory, PP finished lower probability of a larger trend.

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