According to the data monitored by the business agency, the PP market fell this week, and the spot price of wire drawing brand fell. As of August 5, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8133.33 yuan / ton, up or down by – 1.31% compared with the average price at the beginning of the month.

Cause analysis

Industrial chain: on the upstream side, the domestic propylene (Shandong) market price has further declined this week. Due to the weak support of raw material cost and the poor downstream demand, the propylene market is under pressure. The enterprises are not able to deliver goods, and the downstream customers mainly pay small bills, and the prices are seriously depressed. The enterprises are delivering goods, and the prices are successively lowered. There is a strong wait-and-see atmosphere in the market. The supply of propylene market is loose. Under the atmosphere of buying up but not buying down, the price of propylene is easy to fall but difficult to rise.

The price of propylene fell, and the trend of crude oil was weak under the influence of many macro inflation. This week, the support of PP cost side weakened. In terms of industrial load, recently, the operating rate of PP polymerization enterprises has dropped, the supply pressure of enterprises’ independent load reduction and maintenance diversion is partial, and the operation is biased to digest inventory. However, the downstream demand is weak, and the inventory position rises instead of falling and is at a high level. At the same time, the on-site import sources increased synchronously, intensifying market competition. The purchase follow-up of the downstream factories of wire drawing materials is biased to just maintain production. In terms of operation, they buy at a low price and have a strong resistance to the high price supply. Traders gradually yield profits when shipping, and follow the market. The operating rate of terminal enterprises is at the off-season level, and it is expected that the spot market of PP wire drawing materials will continue to fluctuate in the short term.

In terms of fiber materials, according to the data monitored by the business agency, as of August 5, the spot price of domestic fiber PP fell after rising. The mainstream offer price of Z30S (fiber) from domestic manufacturers and traders is about 8166.67 yuan / ton, up or down 0% compared with the average price at the beginning of the month, with a year-on-year decrease of – 3.73%. This week, the load of the 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 product consumption is general, and there is no large-scale replenishment operation. During the week, the loss of wire drawing material capacity and the weak rigid demand pulled the market, causing the spot price to fluctuate. It is expected that the fiber market will stabilize in the short term.

In terms of meltblown materials, the market of meltblown PP fell this week. As of August 5, the average price of domestic meltblown material sample enterprises monitored by the business agency was about 9400 yuan / ton, up or down 0% 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 is small, the pressure of epidemic prevention continues to decrease, medical meltblown cloth materials enter the off-season of consumption, the demand decreases, and the support for spot prices is not obvious. The supply of meltblown materials in the market is sufficient, and the saturation of domestic meltblown materials and cloth enterprises is high. It is expected that the recent market of meltblown PP will be mainly based on finishing and operation.

Future forecast

PP analysts of business news agency believe that: in early August, the domestic polypropylene market fluctuated downward, the raw material propylene market fell, the international crude oil also fell, and the support of PP cost end weakened. 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 will continue to be in shock.