According to the data monitored by the business club, the PP market fluctuated this week, and the spot price of wire drawing brand rose on the whole. As of June 10, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8858.33 yuan / ton, up or down +0.38% compared with the average price at the beginning of the month.

Cause analysis

Industrial chain: upstream, the domestic propylene (Shandong) market price continued to decline this week, falling below 8000 yuan. Due to the increase of propylene supply due to the commissioning of new units and the resumption of production of maintenance units, the market competition intensifies. Under the pressure of sales, the enterprises give up profits and sell goods, and some process routes are even in a state of loss. Downstream market demand is mainly just demand, fast in and fast out, and the overall market is in a situation of supply exceeding demand. The cost of raw materials is high. At present, the supply of propylene market is loose and the demand side follows up slowly. It is expected that the propylene market will be weak and downward in the near future.

Propylene price gradually weakened, crude oil continued to run stronger, and the support on PP cost side was slightly weakened this week. In terms of industrial load, the operating rate of PP polymerization enterprises fell due to the maintenance of some devices, and the supply decreased. On the demand side, the downstream factories follow up the purchase slowly, have strong resistance to the high price supply, and the market trading is light. Traders’ shipments followed the market, rising first and then falling. The operating rate of terminal enterprises was adjusted in a narrow range. The main support in the market came from the long-term support of the upstream of the near and far ends. It is expected that the spot market of PP wire drawing materials will maintain strong cost support and tend to be stronger.

In terms of fiber materials, according to the data monitored by the business society, as of June 10, the spot price of domestic fiber PP has generally risen. The mainstream offer price of Z30S (fiber) from domestic producers and traders was about 8900 yuan / ton, with an increase or decrease of +0.19% compared with the average price at the beginning of the month, and an increase of +3.89% over the same period last year. This week, the start-up of the main downstream non-woven fabric enterprises of PP fiber material was reduced by a narrow margin, and the products of the end enterprises entered the off-season mode, taking goods to maintain production. In terms of medical fiber products, cooling is required, and the rigid support is weakened. The supply side is abundant, and the midstream inventory is under pressure. It is expected that the fiber material may fall in the short term.

In terms of melt blown materials, the melt blown PP market fell this week. As of June 10, the average quotation of domestic melt blown material sample enterprises monitored by the business club was about 9750 yuan / ton, up or down -0.17% compared with the average price at the beginning of the month. In terms of international health events, the current situation in various countries is still not optimistic. Recently, the number of confirmed cases in China has gradually decreased, and the epidemic prevention pressure has eased. At the same time, medical meltblown cloth materials have entered the off-season of consumption, and the demand has decreased. The supply of melt blown materials in the market is sufficient, and the saturation of domestic melt blown materials and cloth enterprises is high. Together with the shipping resistance, it puts pressure on the spot price. It is expected that the recent market of melt blown PP may remain weak.

Aftermarket forecast

According to PP analysts of business agency, the domestic polypropylene market fluctuated this week, the raw material propylene market fell, the international crude oil was at a high level, and the cost support was acceptable. The demand of terminal enterprises develops slowly, the mentality of merchants is general, and the offer follows the market. It is expected that the recent PP market may be firmly supported by the cost side.