In November, due to the lack of strong upward drivers, the PP market basically struggled to move forward under the trend of continuous decline. As of the end of the month, China Plastic City PP index fell 7.27 points, a decline of 0.94%, of which 770.15 points higher, 762.28 points lower. The supply side increment is obvious, and the demand from prosperous to weak, coupled with the volatility of futures, continuous negative feedback, making the spot market unable to recover, the embarrassment, helpless show incisively and vividly!

First, the upstream products are collectively weak, from international oil prices to many monomers, the downward doom is not spared.

Second, PP futures experienced a slow climb in the first ten days, and finally lost to the short-selling forces, and then went down again in the second half of the year, ending in a bleak finish. As of now, the close is below the 5, 10, 20, 40 and 60 moving averages, with significant weakness.

Third, in the face of new orders shrinking, terminal inventory reduction and other status quo, the terminal in November had to accept the fact of the off-season, while superimposing a variety of labor cost pressure, the average start of the downstream industry showed a decline.

Fourth, the frequent dewarehousing operation of petrochemical enterprises, and the measures of lowering the factory quotation successively, have gradually weakened the cost support role.

Fifth, under the background of off-season demand, the new expansion capacity is put on schedule, the loss of superimposed maintenance is reduced, and the imbalance between market supply and demand is unusually prominent, which is also another factor leading to the collapse of the market.

The upstream industry chain has retreated across the board, and cost support has been greatly suppressed. From the spot point of view, although the planned internal and external maintenance devices are more, but the year's new production capacity intensive investment, the supply side pressure is still more prominent; In addition, there is terminal demand, although there is an appropriate amount of transactions under the stimulus of low prices, but in the end, the off-season, the market trading atmosphere is difficult to perform. Fortunately, in the face of this hesitant trading environment, most traders are still calm and do not blindly sell large areas of price cuts. It is expected that the late drawing material range is between 7600-8400 yuan/ton, and the injection plastic is between 7600-9800 yuan/ton.