According to SCI, China’s PP inventory on September 13, 2024 rose by 4.12% from September 6. Therein, the PP inventory at major PP producers mounted up, while that at sample traders and sample ports went down.

Remarks: PP inventory involves PP inventory at major producers (including crude oil-based and coal-based sample producers), sample ports and sample traders.

2. China PP Inventory at Major Producers Up

On September 13, 2024, the PP producer inventory climbed by 6.05% W-O-W this week with a slow buying rhythm of traders and downstream enterprises. The PP output and operating rate climbed due to fewer unit turnarounds. For demand, downstream enterprises partially purchased PP at low prices to cover rigid demand, even though their new orders improved slightly. Meanwhile, traders showed limited interest in stockpiling amid a shortage of confidence.

3. China PP Inventory at Sample Ports Down

On September 13, 2024, PP inventory at China’s main ports decreased by 3.31% W-O-W. The PP port inventory decreased slightly this week. Overseas PP prices remained higher than domestic ones in China, so overseas suppliers provided limited quotations to China. PP import volume slid accordingly. PP export volume changed limitedly at a basic level, as the overseas PP market saw supply growth but demand weakness, even though the ocean shipping freight declined.

4. China PP Inventory at Sample Traders Down

On September 13, 2024, the PP inventory at sample traders dropped by 2.06% W-O-W this week. The U.S. non-agricultural data is lower than expectations, indicating that the labor market is weakening. Players’ concerns for the economy ratcheted down. Crude oil prices remained in a downtrend, cutting the cost support for PP price and impacting the market stance. The PP futures and spot prices both declined, hitting a new low since February. Holders were active in presales amid the dearth of confidence, and some grades may be delivered until end-October. Due to lower feedstock prices, downstream plants faced improved orders and profits, but the improvement was limited. Plants continued to purchase moderately at lows. Thus, the trader's inventory consumption slowed down.