According to the data monitored by SunSirs, the PP market continued to rise last week, and the spot prices of all wire drawing brands rose generally. As of September 15, the mainstream offer price of domestic producers and traders T30S (wire drawing) was about 8,250 RMB/ ton, up or down by +2.38% compared with the average price at the beginning of the month.
Industrial chain: upstream, propylene market rose last week. At present, the supply side maintains the previous tight supply, some enterprises continue to maintain maintenance, and the spot price on the market is reduced, supporting the spot price. The demand of downstream enterprises is higher due to the removal of power and production restriction, traditional peak demand season and other factors. Although the propylene market has shown a weak supply and demand trend recently due to the fluctuation of crude oil and the impact of macroeconomic pessimism, the supply of propylene is tight at the current stage on the market, and it is expected that the supply of propylene will remain strong.
The price of propylene rose, but the price of crude oil at the far end cost fluctuated, and the PP cost support was average last week. In terms of industry load, the operating rate of PP polymerization enterprises decreased last week, and the overall load of domestic industry was more than 70%. In terms of inventory, due to the recent large increase, buyers have limited acceptance of the high offer. Last week, domestic inventory rose significantly, and petrochemical enterprises accumulated nearly 10% of the stock, forming a certain pressure on the spot. In terms of terminal enterprises, the load of terminal enterprises is generally higher in the peak demand season. Plastic weaving enterprises and BOPP enterprises just had a significant demand, and they did not reduce orders due to the digestion of early inventory after the festival. The mentality of businessmen was stronger, and the offer kept up with the petrochemical plant.
In terms of fiber materials, according to the data monitored by the business community, as of September 15, the spot price of domestic fiber PP was weak. The mainstream offer price of domestic producers and traders Z30S (fiber) is about 8,333.33 RMB/ ton, which is +3.95% higher than the average price at the beginning of the month, and -6.02% lower than the same period last year. Last week, the load change of downstream non-woven enterprises, the main force of PP fiber materials, was limited, the offer of spunbonded non-woven fabrics was stable, and the demand of terminal enterprises was in shock. The digestion speed of nonwoven terminal products is acceptable, and the enterprise prefers to just take the goods for fiber PP replenishment. The rising market of fiber material is mainly driven by the upstream propylene boost and the strong demand in peak season. It is expected that the fiber material market will remain strong in the short term.
In terms of meltblown materials, the meltblown PP market fluctuated last week. As of September 15, the average quotation of domestic meltblown material sample enterprises monitored by the business community was about 9,200 RMB/ ton, up or down by +0.36% compared with the average price at the beginning of the month, and -0.36% year-on-year. In terms of international health events, the current situation in various countries is still not optimistic, and neighboring Japan has witnessed explosive development recently. There is rebound in some areas of China, but the overall epidemic prevention pressure is not strong, and the pulling effect on medical melt blown fabric materials is limited. The domestic and foreign demand has not significantly helped, and the support for spot prices is poor. The inventory of melt blown materials in the market is sufficient, and the saturation of domestic melt blown materials and cloth enterprises is high. It is expected that the recent market of melt blown PP will still run sideways.
SunSirs PP analysts believed that the PP polypropylene market continued to rise, the raw propylene market rose at a high level, and the PP cost side support was strengthened. The terminal enterprises just need strong support, but their acceptance of the high price offer on the market after the previous price rise is limited. The social inventory began to rise, and buyers gradually waited cautiously. It is expected that China PP market will be put into consolidation operation in the short term.
