According to data monitored by the Business Society, the PP market has seen significant stability and slight fluctuations recently, with various wire drawing brands showing a slight increase. As of March 31st, the mainstream quoted price of T30S (wire drawing) by domestic producers and traders is around 7825.71 yuan/ton, with a decrease of -1.25% compared to the average price level at the beginning of the month.

Cause analysis

Industry chain: On the upstream side, the propylene market in Shandong has recently rebounded. Downstream procurement is cautious and enters the market on dips. Low demand for propylene is increasing, while upstream exploration is driving up. The low level sales of propylene factories are smooth, effectively reducing inventory, and it is expected that the propylene market will continue to rise in a narrow range in April.

The price of propylene rebounded after falling, gradually recovering from the cost side of PP. In terms of industry load, there have been limited changes in the operating situation of PP enterprises this week. The overall industry load has remained stable at around 80%, with stable supply and sufficient on-site supply, resulting in increased supply pressure. In terms of demand, the operating rates of downstream plastic weaving and film materials enterprises are fluctuating, and the stocking situation of terminal enterprises is average, with on-demand procurement being the main focus.

In terms of fiber materials, according to data monitored by Business Society, as of March 31, the spot price of domestic fiber PP has declined in a narrow range. The mainstream quoted price of domestic producers and traders for Z30S (fiber) is around 7712 yuan/ton, with an increase or decrease of -2.37% compared to the average price at the beginning of the month, and a decrease of -14.46% compared to the same period last year. Recently, the downstream non-woven fabric enterprises, which are the main force of PP fiber materials, have had a low load, and the demand from end enterprises is weak. The digestion speed of non-woven fabric end products is average, and the enterprise’s replenishment operation for fiber PP is not strong. It is expected that the consolidation operation will remain volatile in the short term.

In terms of melt blown materials, the recent melt blown PP market has shown a significant decline. As of March 31st, the average quotation of domestic melt blown material sample enterprises monitored by the Business Society is around 8600 yuan/ton. Compared with the average price level at the beginning of the month, the price has increased by -9.79%, and decreased by -16.37% compared to the same period last year. At present, the social consumption of medical meltblown fabric materials is weak, and towards the end of the month, the meltblown fabric has stabilized after a decline. There is no significant boost in overseas demand, and traders are taking orders at a discount, with prices mostly around 8500 yuan/ton. It is expected that the trend of melt blown materials may continue to be weak.

Future Market Forecast

PP analysts from Business Society believe that the polypropylene market has risen in a narrow range this week. The raw material propylene market rebounded after a decline, and the cost side’s support for the market is still acceptable. But the demand of terminal enterprises tends to be just enough to maintain production, and the demand release is weak. At the same time, the expected impact of production capacity landing next month on the market is evident, and it is expected that the PP market may continue to consolidate and operate in the short term.