According to the data monitored by the business society, the PP market weakened this week, and the spot ex factory price of wire drawing brand decreased. As of May 13, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8710 yuan / ton, up or down – 0.57% compared with the average price at the beginning of the month.

Cause analysis

Industrial chain: in the upstream, propylene rose after the festival driven by the shock rise of international crude oil, and the price rose this week. The downstream is cautious and purchases on demand. The game between cost support and demand side is expected to be dominated by propylene market or narrow range shock.

After the rise of propylene price, 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 supply side. This week, the industry load increased, the on-site supply returned to an abundant pattern, and the positive impact on the supply side weakened. Buyers have strong resistance to high price sources, light market trading, and the demand side is generally just in need of goods. After the reduction of spot price, there are some bargain hunting operations to build the bottom of PP price. In addition, the impact of domestic health events is still ongoing, and the logistics and shipment in some areas are still not smooth. Under the game of supply and demand, the spot market fell.

In terms of fiber materials, according to the data monitored by the business society, as of May 13, the spot price of domestic fiber PP rebounded after rising. The mainstream offer price of domestic manufacturers and traders Z30S (fiber) is about 8950 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 decrease of – 0.37%. The main downstream non-woven fabric enterprises of PP fiber materials reduced their operation by a narrow margin, 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 demand for medical fiber is expected to be abundant, and the supply of medical fiber is expected to be sufficient in the short term.

In terms of meltblown materials, the meltblown PP market fell this week. As of May 13, the average quotation of domestic meltblown material sample enterprises monitored by the business society was about 10033.33 yuan / ton, up or down by – 2.59% 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 domestic polypropylene market is generally weak this week, the raw material propylene market is callback after the rise, the international crude oil fluctuates and rises, 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 fluency of freight transportation in some regions is not ideal, and the long and short are tangled. It is expected that the recent PP market may have a limited decline.