According to the data monitored by SunSirs, the domestic PP market fell in December 2020, and the spot prices of various brands had a certain downward trend. As of January 1, 2021, the mainstream offer price of T30S (wire drawing) of domestic manufacturers and traders is about 8,150 RMB/ ton, a decrease of 10.11% compared with the average price level in early December.
In terms of PP upstream propylene, according to the data of SunSirs, the domestic propylene (Shandong) market price rose slightly in December 2020 and then fell rapidly. At the beginning of the month, the price was 7,712 RMB/ ton, at the end of the month, the price was 7,209 RMB/ ton, with a monthly decrease of 6.52%, and the amplitude reached 11.99%. At present, there are many problems in the manufacturers, such as the accumulation of warehouse, the deviation of operation, and the increase of low price supply. The downstream market is negtive, and the overall situation is slightly depressed, mainly for the purchase of rigid demand. Therefore, it is expected that the propylene price may continue to decline in the near future.
According to the data monitored by SunSirs, the PP (wire drawing) market gradually declined in December 2020, and some brands reduced by a large margin. Early November PP inventory was low, futures rose sharply, and December PP has been high. Taking plastic weaving enterprises as the representative, the downstream cost pressure increases and the profit space was compressed. In addition, the PP peak season came to an end, and the demand continued to be scarce. At the end of December, the production dealers increased the profit margin and actively completed the task. Petrochemical inventory reduction was obvious.
According to the data monitored by SunSirs, as of January 1, 2021, the mainstream offer of Z30S (fiber) by domestic producers and traders has dropped slightly compared with the beginning of December, 2020, with the price of about 8,316.67 RMB/ ton, a drop of 8.27% compared with the average price level at the beginning of December. The recent PP futures shock down, with bad spot market. In addition, as the holiday approaches, the demand for fiber PP will further shrink in the short term, and the price of PP (fiber) may still decline.
In December 2020, PP meltblown material market was relatively flat, and the price tended to be stable. As of January 1, 2021, the average quotation of PPH-Y1500 sample enterprises monitored by business society was 10,850 RMB/ ton. Recently, a small-scale rebound occurred in some areas of the epidemic situation in China, but the overall situation was stable, and there was no large-scale rise in the demand for anti epidemic materials such as masks. There is a surplus of suppliers in the melt blown cloth manufacturing market, and the price of some melt blown cloth manufacturers is close to 15000 RMB/ ton, resulting in serious profit dilution. Overseas epidemic outbreak trend is obvious, many countries once again announced the implementation of strict closure of the city. There is still a certain demand for international medical protection products, and the price of imported materials is also stable. SunSirs believes that the domestic melt blown PP price has entered the platform period, and it is expected that the overall trend of melt blown PP market will be stable in China.
SunSirs PP analysts believe: December domestic PP spot market fell mainly. Upstream propylene market fell in mid December, weakening support for PP cost side. At present, PP drawing material and fiber material market is in a downward trend, PP (melt blown) price tends to be stable. However, in the long run, PP production capacity and supply have increased, the overall incremental trend remains unchanged, and supply side pressure increases. As the Spring Festival is approaching, SunSirs believes that the demand side may continue to tighten, and China PP prices may still have a downward trend.
