20231031-冠通期货-PP_做多L-PP价差_2页_660kb

Summary of PP Futures Analysis - October 31, 2023

Strategy Recommendation

• Suggest selling long L-PP price spreads due to factors including macroeconomic stimulus policies that may improve demand, stronger new order expectations from increased government spending on reconstruction and disaster prevention, and the impact of lower PMI data. PDH plant maintenance is seen as a key opportunity for entry.

Market Analysis

• Futures: PP2401 ended down by 0.2%, closing at 7588 yuan/ton with reduced volume and lower highs/lows.
• Spot: PP grades saw minimal price changes, with ranges typical for the period.
• Supply: Industry utilization rates dropped, potentially restraining output. Demand trends show improvement, with higher downstream activity.

Key Recommendations

• Monitor PDH operating rates closely as they influenced recent price movements.