According to the data monitored by the business community, the PP market fluctuated and went down in early July, and the spot prices of various brands fell on the whole. As of July 9, the mainstream offer price of T30S (wire drawing) of domestic manufacturers and traders was about 8516.67 yuan / ton, a decrease of 0.97% compared with the average price at the beginning of the month, and an increase of 5.58% compared with the same period last year.
Cause analysis
PP upstream propylene domestic (Shandong) market fell slightly in early July, with an average price of 7796 yuan / ton on the 9th, down 0.1% in the week. The recent propylene market performance is tepid, the price change is not big, individual manufacturers price adjustment. By the end of this week, the mainstream quotation in the domestic market was 7700-7800 yuan / ton, and the downstream purchased on demand. The market transaction was fair and the price was firm. Propylene analysts from chemical branch of business society think: long short game, uncertainty of crude oil market, pay close attention to the future market changes. If the cost side does not fluctuate significantly, and the downstream demand supports, propylene is expected to fluctuate upward in the near future.
Upstream propylene market narrow decline, PP cost side support slightly weakened. At present, the average operating rate of the industry has increased compared with the end of last month, and the market supply shows an increasing trend. At the same time, domestic drawing PP inventory also increased, two barrels of oil PP increased by more than 14% compared with last week. In terms of demand, the operating rate of terminal enterprises has decreased, the purchasing operation just needs to be followed up, and the actual orders are mostly low turnover. Part of the sellers make profit to ship, but there is support from the price rise of PP outside the market, and the sellers’ willingness to make profit is limited on the whole.
In terms of fiber materials, according to the data monitored by the business society, as of July 9, the mainstream offer of domestic producers and traders Z30S (fiber) was similar to that of wire drawing materials, with a price of about 8583.33 yuan / ton, a decrease of 1.53% compared with the average price at the beginning of the month, and an increase of 8.19% compared with the same period last year. At present, the demand of fiber PP is not large, and the profit of downstream enterprises is general. The consumption of diapers and other products in the domestic market has gradually returned to a stable level, and the manufacturers of spunbonded non-woven fabrics and Spunlaced non-woven fabrics in the direct downstream tend to follow up passively and take whatever they use. At the end of this week, domestic fiber PP production accounted for more than 11%, up from the previous.
Meltblown materials, meltblown PP market continued weak market in early July, spot prices softened. As of July 9, the average quotation of domestic pph-y1500 sample enterprises monitored by business society was about 9600 yuan / ton. The saturation of domestic melt blown fabric manufacturing market is high. In the medium term, the situation of melt blown PP production enterprises leaving the market is more prominent. At present, there are few devices that are still shipping. At present, the domestic epidemic situation is generally stable, and the situation of saturated demand for medical protective equipment is relatively stable. In terms of overseas epidemic situation, the epidemic situation in some neighboring countries in Asia Pacific region of China is deep and long-term, forming a certain epidemic prevention pressure on neighboring countries and regions. During this period, the demand of overseas epidemic prevention market for oxygen generator and other equipment related products increased, and the pulling effect on melt blown PP industry was not obvious. The demand for meltblown materials is difficult to expand, and it is expected that the price will continue to be weak.
Future forecast
Business community PP analysts believe that: in early July, the domestic polypropylene market overall narrow weakening. The operation rate of downstream enterprises is not high and the demand is short. Weak purchasing follow-up and poor response to high price supply. The upstream raw material propylene also fell slightly, and the support of PP cost side was not weakened. Polymerization plants and businesses are still willing to support the price. It is expected that PP price will fluctuate in the short term.
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