News summary
China's manufacturing PMI has expanded for a month, real estate policies have been favorable, and PP demand is expected to improve. PP's operating rate dropped this week, petrochemical inventories could be removed after the holiday, and PP's valuation was low despite the limited decline in crude oil. It is recommended to hold multiple orders in light positions in the early stage and observe subsequent demand.
Newsletter text
[Secondary Market Observation] Financial analysis shows that investors can maintain cautious optimism about the PP futures market
Downstream industrial activity rebounded slightly, and China's manufacturing purchasing managers 'index (PMI) remained in the expansion area for two consecutive months, showing industrial vitality. At the same time, the successive issuance of ultra-long-term treasury bonds and proactive policies in the real estate market have jointly boosted the growth.pokerflushrulesBased on market demand expectations, investors should pay close attention to whether demand can continue to grow.
Although the operating rate of polypropylene (PP) this week dropped by 4 percentage points from last week to a lower level, considering that the destocking performance of the petrochemical industry in the first week after the May Day holiday was still acceptable, although the destocking speed has slowed down, the impact on the market is relatively limited.
In addition, the slight decline in crude oil prices has not had a significant impact on PP market valuation, and its valuation level is still at a low level. Considering the limited progress in de-inventory of finished products and the reduced market acceptance of high-priced raw materials, the L-PP price difference fell, but this change did not significantly affect the market.
To sum up, investors in the PP futures market should hold multiple orders in the early stage with light positions and closely observe market dynamics in order to make more informed investment decisions.