According to the data monitored by the business society, the overall PP market was stable and small in early September, and the spot prices of various brands were adjusted in a narrow range. As of September 3, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8366.67 yuan / ton, with a slight decrease of 0.20% compared with last Friday and a year-on-year increase of 1.41%.

Cause analysis

Industrial chain: upstream propylene. According to the bulk list data of business society, as of September 3, the reference price of propylene was 7617.57, down 1.94% compared with Monday’s price. The shipment of production enterprises has improved, and the market trading atmosphere is acceptable.

The price of direct raw material propylene fell, and the cost side support of PP was weakened this week. In terms of operating rate, the overall load of the industry was about 80-90% at the end of August. At present, domestic polypropylene units are slightly lower than before, but the reopening of some units is approaching, and the operating rate is expected to rise. The supply side also operates smoothly and the supply pressure is general. The demand for PP wire drawing materials continued to follow up smoothly, the actual purchase operation was biased towards just need to maintain production, and the high price supply was generally resisted by buyers. The shipment fluency of merchants decreased, and there was great resistance to the increase of offer. Generally, they shipped at a high price, and it was heard that the price of real orders decreased.

In terms of fiber materials, according to the data monitored by the business society, as of September 3, the spot price of domestic fiber PP was adjusted in a narrow range in early September. The mainstream offer price of Z30S (fiber) from domestic manufacturers and traders was about 8433.33 yuan / ton, a slight increase of 0.20% over last week and 1.61% over the same period last year. This week, the demand for PP fiber materials generally stabilized. Although the current national fiber material operating rate is below 60%, the capacity mismatch to a certain extent has intensified the industry competition. At a time when the demand for end consumer goods of main downstream non-woven fabrics is difficult to increase, the market pattern may be weak. At the same time, the demand for epidemic prevention products has also decreased steadily, which may reduce the positive impact of traditional peak season on fiber PP.

In terms of melt blown materials, the melt blown PP market operated weakly and stably this week, and the spot price decreased by a narrow margin. As of September 3, the average quotation of domestic melt blown material sample enterprises monitored by business society was about 9200 yuan / ton, with a decrease of 0.36% compared with last week. At present, the impact of international health events is still profound, and there is a certain epidemic prevention demand overseas, but the increment of melt blown cloth orders is not obvious. Melt blown PP has great resistance to rise in the domestic market, and the recent weak market has dropped due to the end of the stock tide in some medium and high-risk areas. At present, due to the high market saturation of melt blown materials and cloth in the early stage, there are few devices still in production in China. It is expected that the price market of melt blown PP may continue to operate smoothly.

Future forecast

PP analysts of business society believe that the domestic polypropylene market was stable and weak in early September. On the whole, the spot price decreased in a narrow range. The demand follow-up of terminal enterprises continued to be deadlocked, and the supply was stable. The upstream propylene market fell weakly and the direct raw material support weakened. The peak season hoarding operation is about to begin, but there is resistance to the high report of merchants. It is expected that the spot price of PP may rise in the peak season.