According to the data monitored by the business club, the PP market continued to decline this week, and the spot price of wire drawing brand fell. As of July 8, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8508.33 yuan / ton, up or down -1.16% compared with the average price at the beginning of the month.

Cause analysis

Industrial chain: upstream, the domestic propylene (Shandong) market price this week was low and temporarily stable, and the average market price in Shandong was stable at 7460 yuan / ton, down 7.44% from 30 days ago. Under the premise of supporting the bottom of the cost, the market supply is loose, the downstream rigid demand is dominated, and the price focus of propylene is still on the downward trend in the atmosphere of buying up but not buying down. The market is in a stalemate due to the long short game. Propylene market is expected to run at a low level in the near future.

Propylene prices fluctuated at a low level. Recently, crude oil fell under the influence of the Federal Reserve’s interest rate hike, and PP cost side support was weak this week. In terms of industry load, the operating rate of PP polymerization enterprises was adjusted in a narrow range in the early stage, and the real-time lost capacity was reduced. At present, there is a certain supply pressure. This week’s inventory digestion of enterprises and midstream. For example, last week, the inventory position increased, and was at the high position over the years. In terms of demand, the downstream factories of wire drawing materials purchase and follow-up are biased towards just need to maintain production. In terms of operation, they buy on bargain hunting and have a strong resistance to high price sources. Traders’ shipments are in line with the market, and the operating rate of terminal enterprises has decreased by a narrow margin. It is expected that the spot market of PP wire drawing materials may continue to be weak and adjusted.

In terms of fiber materials, according to the data monitored by the business society, as of July 8, the spot price of domestic fiber PP gradually fell. The mainstream offer price of Z30S (fiber) from domestic producers and traders was about 8416.67 yuan / ton, up or down -1.94% compared with the average price at the beginning of the month, with a year-on-year decrease of -1.94%. This week, the load of downstream non-woven enterprises, the main force of PP fiber, fell compared with last week. In terms of the demand and commencement of end enterprises, the overall continuation of large enterprises just need to take goods to maintain production, the product consumption maintained the off-season mode, and the replenishment operation was biased towards maintaining production. The load of small and medium-sized enterprises is low, and they often stop production. The demand for medical fiber products has also cooled, and the rigid support is weakened. The supply side is abundant, and the market momentum is reduced. It is expected that the fiber material may 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 July 8, the average quotation of domestic melt blown material sample enterprises monitored by the business agency was about 9583.33 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 decreased. 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 is expected that the recent market of melt blown PP may maintain a weak operation.

Aftermarket forecast

PP analysts of business agency believe that this week, the domestic polypropylene market fell, the raw material propylene market was low, the decline of international crude oil intensified, and the cost side support of PP weakened. The demand of terminal enterprises expands slowly, the mentality of merchants is general, and the offer is subject to the market. It is expected that the PP market may continue to be weak in the near future.