Introduction and Analysis of Polypropylene Futures Varieties

Overview of polypropylene, what is polypropylene

Polypropylene (PP) is a thermoplastic resin and one of the five general synthetic resins. The appearance is white pellets, odorless and non-toxic. Due to the regular crystal structure, it has the advantages of easy processing, impact resistance, flexural resistance and good electrical insulation. It is used in the automotive industry, household appliances, electronics, packaging, building materials, furniture, etc. It has a wide range of applications.

The main factors affecting the price changes of polypropylene

The price of polypropylene in my country fluctuates drastically. Since the fourth quarter of 2014, the price of PP has always followed the price of crude oil and showed a fluctuating downward trend.

1. The impact of upstream raw materials

Crude oil is the main raw material of polypropylene, and its price has a greater impact on the price trend of polypropylene. The rise in crude oil prices is transmitted to the downstream through production costs and other channels, causing the price of polypropylene to rise; the decline in crude oil prices has dealt a blow to the mentality of market merchants and downstream manufacturers to a certain extent. The increase in market inventories caused the price of polypropylene to fall.

2. The impact of downstream demand

The market price of polypropylene will also fluctuate with changes in downstream demand. When the economy enters an upward cycle, the downstream plastic products industry develops rapidly, and the demand is strong, and when the supply is relatively insufficient, the polypropylene market price will increase; on the contrary, when the economy enters the downward cycle, the downstream industry demand weakens and the upstream supply is sufficient, the market price will decline.