According to the data monitored by the business association, the PP market has fallen recently, and the spot price of the wire drawing brand has decreased. As of August 23, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 7983.33 yuan / ton, up or down by – 3.13% compared with the average price at the beginning of the month.

Cause analysis

Industrial chain: in the upstream, the propylene market has fallen recently. The downstream demand is not as expected, the pressure of propylene enterprises to take goods is not reduced, the situation of market supply exceeding demand is difficult to change, and the end-users just need to purchase, and most of them are small. On the supply side, the maintenance equipment of many parties has been resumed one after another, and the contradiction between supply and demand has intensified. Under the situation of increased supply in the future, it is expected that the propylene price may further fall.

The price of propylene fell, and the international oil price fluctuated and fell, so the support of PP cost side was poor. In terms of industrial load, recently, the operating rate of PP polymerization enterprises has increased steadily, but the proportion of wire drawing material production allocation is at a low level of 25% in the month, and the inventory has decreased in a narrow range. Generally speaking, although there is long-term supply pressure, the spot is relatively tight. On the downstream side, although the wire drawing material terminal factory is affected by certain high temperature and limited film, from the perspective of market performance, the purchase follows a narrow recovery. Traders have a general attitude, and the offer is subject to the market. It is expected that the spot market of PP wire drawing materials will be stronger in the short term.

In terms of fiber materials, according to the data monitored by the business agency, as of August 23, the spot price of domestic fiber PP was weak. The mainstream price of Z30S (fiber) offered by domestic manufacturers and traders is about 8000 yuan / ton, with an increase or decrease of – 2.83% compared with the average price at the beginning of the month, and a decrease of – 5.70% compared with the same period of last year. In the early stage, the load of downstream non-woven fabric enterprises, the main force of PP fiber materials, was maintained as a whole, and the demand and operation of end-users continued the off-season mode of large-scale enterprises maintaining production and small and medium-sized enterprises reducing the load. The digestion speed of non-woven fabrics of downstream products is general, and the enterprises reduce the price for shipment, and the replenishment operation of fiber and PP is biased towards bulk orders. It is expected that the fiber market will continue to consolidate in the short term.

In terms of meltblown materials, the recent meltblown PP market has declined. As of August 23, the average price of domestic meltblown material sample enterprises monitored by the business agency was about 9166.67 yuan / ton, up or down by – 2.65% compared with the average price level at the beginning of the month, and down by – 3.34% year-on-year. In terms of international health events, the current situation in various countries is still not optimistic, and the recent explosive development in neighboring Japan. There is a rebound in some areas of China, but the overall epidemic prevention pressure is not high. Medical meltblown cloth materials are in the off-season of consumption, and the domestic and foreign demand has not been significantly helped, which does not support the spot price. There is sufficient inventory of meltblown materials in the market, and the saturation of domestic meltblown materials and cloth enterprises is high. It is expected that the recent market of meltblown PP will still be dominated by weak operation.

Future forecast

PP analysts of business society believe that the polypropylene market has stabilized after the recent decline, the raw material propylene market has fallen, and the cost side of PP is not well supported. In recent days, the demand of terminal enterprises has recovered in stages, and the offers of merchants follow the market. It is expected that the recent PP market will be dominated by strong consolidation and operation.