According to the data monitored by the business agency, the market trend of domestic PP was weak in the fourth week of July, and the prices of various brands decreased slightly. As of July 24, the mainstream offer price of T30S (wire drawing) of domestic manufacturers and traders was about 7800.00 yuan / ton, a decrease of 0.21% compared with the average price at the beginning of the month.

Cause analysis

In terms of propylene upstream of polypropylene, according to the data of business agency, the domestic propylene (Shandong) market price remained stable after rising in the fourth week of July. The weekend price was 6870 yuan / ton, with a weekly increase of 1.25%, which was 0.07% higher than the average price level at the beginning of the month. The recent price of propylene fluctuates periodically, and the price range is relatively stable. Since the beginning of July, the price has been continuously reduced by 200-250 yuan / ton. From June 6 to 9, the price dropped by about 250 yuan / ton. From the 12th to the 16th, the price dropped by 150-200 yuan / ton. Since the third round of rise on 18th, the price has risen about 150 yuan / ton. In recent days, most of the prices are stable. The market transaction is between 6800 yuan / ton and 7100 yuan / ton, and the mainstream price is 6800-6850 yuan / ton. Now propylene manufacturers shipping general, inventory pressure is not big. At present, the shipment situation is general, the crude oil price has slightly increased, and the overall downstream market operating rate is fair, but the purchasing enthusiasm is weak, and the market trading is temporarily stable. At present, most of the propylene market prices are still in the upper limit of the oscillation range, so it is expected that propylene prices will generally decline in the near future.

Upstream propylene shock adjustment in July, the PP cost side support is general. Recent PP (drawing) market performance is weak. According to the data monitored by the business agency, the spot price of PP (wire drawing) has been running smoothly in early July. Since the 6th, the price of various grades has been increased by about 250 yuan / ton. On the 12th, the average price of drawing material reached the recent high of 8066.67 yuan / ton, and then the spot price has gradually adjusted back to now. As of July 24, the main offer price of T30S (drawing) of domestic manufacturers and traders is about 7800.00 yuan / ton, with monthly vibration At present, it has reached 3.31%. On the supply side, the recent wire drawing production schedule is normal, and there are more new equipment put into production in the second half of the year. In the early ten days, there was a shock of imported materials arriving at the port, and the inventory increased to a certain extent. However, the improvement in demand is limited. At present, the downstream stock mood is not high, and the wait-and-see mood is heavy, and the actual trading atmosphere is relatively cold. In addition, lower futures, resulting in the market to fall mentality. However, near the end of the month, in order to complete the plan, the industry has more positive adjustments. PP market is expected to continue to adjust in the near future.

According to the data monitored by the business agency, as of July 24, the mainstream offer price of Z30S (fiber) of domestic manufacturers and traders was about 7783.33 yuan / ton, which was 0.85% lower than the average price at the beginning of the month. At present, the domestic spot price of PP (fiber) is relatively stable. Although the overall panel is aided by macro demand, the de stocking speed has slowed down in recent years, and the pressure on the supply side has increased. At the end of the month, there is a profit concession in the transaction, the downstream factories have a heavy wait-and-see atmosphere, the purchase follow-up is insufficient, and the on-site transaction is poor. Recently, the stability of PP (fiber) disk is weak, and the operation is rigid.

The market of PP melt blown materials continues to be weak. According to the prices of business agencies, the current domestic prices of PP (melt blown) materials continue to decline. As of July 24, the average quoted price of meltblown PP for melt index 1500 is about 17000 yuan / ton. Domestic public health events are generally stable, and the demand for epidemic prevention materials has entered a stable stage. And some epidemic prevention related products were oversupply, and most of the prices fell. The demand for melt blown fabric directly downstream also shrinks greatly, and the diversification of epidemic prevention materials also has a certain dispersion on the demand for masks. PP (melt blown) has fallen with the downstream, the business mentality is negative, and the phenomenon of leaving the field is still more. It is expected that melt blown fabric will still be difficult to improve in the near future.

Future forecast

PP business agency analysts believe: July fourth week domestic PP spot market trend weak. Upstream propylene market shock consolidation, the cost of PP support in general. PP (drawing) price fell, PP (fiber) big stable small move. PP (melt blown) demand weakened, prices continue to callback. At present, China is still in the peak season of maintenance, and the supply increment of granular material end is limited. However, the pressure of propylene production enterprises to ship goods is relatively large recently. In addition, it is reported that there are equipment put into operation in the second half of the year. Although there is a recovery of macro demand, the petrochemical plant’s stock reduction slows down, and the downstream factory’s stock preparation follow-up is poor, and the business mentality is loose, and the actual transaction is weak. PP market is expected to continue to be weak, it is recommended to pay attention to the further trend of supply and demand.