According to the data monitored by the business club, the PP market fell this week, and the spot price of the wire drawing brand decreased overall. As of June 17, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8725 yuan / ton, up or down -1.13% compared with the average price at the beginning of the month.

Cause analysis

Industrial chain: upstream, the domestic propylene (Shandong) market price rose steadily this week. Propylene supply decreased due to the overhaul of a plant in Shandong, boosting market confidence. Downstream market demand is mainly just demand, fast in and fast out, and the overall market is still in a situation of supply exceeding demand. It is expected that the propylene market may decline in the near future.

Propylene prices rose steadily, crude oil fell at a high level due to the Fed’s interest rate hike, and PP cost side support was acceptable 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, but the inventory of enterprises and midstream increased compared with the previous period. 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 follow the market, the operating rate of terminal enterprises is adjusted in a narrow range, and the main support in the market comes from the upstream support. It is expected that the spot market of PP wire drawing materials will continue to be weak.

In terms of fiber materials, according to the data monitored by the business society, as of June 17, the spot price of domestic fiber PP fell as a whole. The mainstream offer price of Z30S (fiber) from domestic producers and traders was about 8766.67 yuan / ton, up or down -1.31% compared with the average price at the beginning of the month, with a year-on-year increase of +1.94%. This week, the main downstream non-woven fabric enterprises of PP fiber materials started their business in a generally horizontal way. The products of the end enterprises maintained the off-season mode and took 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 market momentum is reduced. It is expected that the fiber material will remain weak in the off-season market in the short term.

In terms of melt blown materials, the melt blown PP market fell this week. As of June 17, the average quotation of domestic melt blown material sample enterprises monitored by the business club was about 9650 yuan / ton, up or down -1.19% 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 fell this week. Although the raw material propylene and international crude oil market fell, the main support in the market is still the cost side. 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 continue the weak adjustment market.