According to the data monitored by the business society, the PP market fluctuated this week, and the spot ex factory price of wire drawing brand rose first and then fell. As of May 20, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8640 yuan / ton, up or down – 1.37% compared with the average price at the beginning of the month.

Cause analysis

Industrial chain: upstream, the domestic propylene price was stable at the beginning of the week and fell sharply near the weekend. The raw material cost fluctuated and the support was acceptable. The supply side has increased, the market demand is mainly just demand, and the price is growing and falling rapidly. The overall purchase of downstream enterprises is still more cautious, focusing on maintaining production.

Propylene prices fell, crude oil continued to fluctuate and rise, and PP cost side support was acceptable. In terms of supply, in the early stage, PP enterprises took the initiative to reduce the burden and reduce the pressure, and the benefits of the supply side gradually came out. Last week, the industry load increased, the on-site supply returned to the abundant pattern, and the positive impact of the supply side weakened. Buyers are more resistant to high priced goods, the market trading is light, and the demand side is generally just in need of goods. The impact of domestic health incidents is still ongoing, and logistics and shipment in some areas are still not smooth. The spot market fell due to insufficient demand follow-up.

In terms of fiber materials, according to the data monitored by the business society, as of May 20, the spot price of domestic fiber PP fell by a narrow margin. The mainstream offer price of Z30S (fiber) from domestic manufacturers and traders is about 8883.33 yuan / ton. Compared with the average price at the beginning of the month, the rise and fall range is – 0.37%, with a year-on-year increase of + 0.38%. The main downstream non-woven enterprises of PP fiber materials maintained a narrow reduction in their operation, and the terminal enterprises took goods to maintain production, and the rigid demand support weakened. The health incident affected shipments in some areas, increased transportation resistance and put pressure on enterprise inventory. The supply side is abundant, and the demand for medical fiber products is cooling. It is expected that the fiber will be subject to shock finishing and operation in the short term.

In terms of meltblown materials, the meltblown PP market fell this week. As of May 20, the average quotation of domestic meltblown material sample enterprises monitored by the business society was about 9900 yuan / ton, up or down by – 3.88% 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. The number of confirmed cases in China has gradually decreased, the epidemic prevention pressure has eased, and the demand for medical meltblown cloth materials has decreased. The supply of meltblown materials in the market is generally sufficient, and the saturation of domestic meltblown materials and cloth enterprises is high. Together with the shipping resistance, the increase of meltblown materials is suppressed. It is expected that the recent market of melt blown PP may maintain weak operation.

Future forecast

PP analysts of business agency believe that the rise of domestic polypropylene market is blocked this week, the overall shock is down, the raw material propylene market is callback, the international crude oil shock is up, and the cost support is OK. The demand of terminal enterprises remains weak and bargain hunting. The business mentality is not strong, and the operation is biased towards price reduction and order taking. The short-term freight market is expected to be narrow, or the weak part will not be ideal.