According to the data monitored by SunSirs, the PP market was running strongly in mid December, and the spot prices of all wire drawing brands rose. As of December 16, the mainstream offer price of T30S (wire drawing) by domestic producers and traders was about 7,941.67 RMB/ton, up or down +0.74% compared with the average price at the beginning of the month.
Industrial chain: upstream, the domestic propylene market has risen recently. Influenced by the delayed news of the Federal Reserve's interest rate increase, the international crude oil and petrochemical industry chain was boosted, and propylene rose as a whole. However, the unilateral improvement is limited. At the same time, the profit of downstream products is tightened, the operating rate is not high, and the procurement is restrained. The rise narrowed in the near weekend, and it is expected that the propylene market will be stronger to find a balance point.
Propylene prices rose, and the recent PP cost side support strengthened. In terms of industry load, three production lines of PP polymerization enterprises stopped for maintenance this week, and the industry load decreased by a narrow margin. However, the supply of goods in the field is sufficient, smoothing the advantages of supply side shrinkage. The domestic stock position has declined compared with that before, especially the stock of wire drawing materials has been largely digested. In terms of demand, the market of downstream products is average, among which plastic weaving enterprises and BOPP enterprises have limited changes in stock. The increase of wire drawing materials this week was driven by the expanding demand for melt blown materials.
In terms of fiber materials, according to the data monitored by SunSirs, as of December 16, the spot price of domestic fiber PP has generally risen. The mainstream offer price of domestic producers and traders Z30S (fiber) is about 8,183.33 RMB/ton, up or down 2.29% compared with the average price at the beginning of the month, and +0.61% year-on-year. This week, the load of downstream non-woven enterprises, the main force of PP fiber materials, increased, the profit of spunbonded non-woven fabrics was fair, and the demand of terminal enterprises increased. The digestion speed of nonwoven end products was accelerated, and enterprises increased their efforts to replenish fiber PP. The kinetic energy in the field is rising, and it may still remain strong in the short term.
In terms of melt blown materials, PP market of melt blown materials was significantly open this week. As of December 16, the average quotation of domestic meltblown material sample enterprises monitored by SunSirs was about 10,006.67 RMB/ton. Compared with the average price at the beginning of the month, the increase or decrease was +11.85%, and the year-on-year increase was+4.68%. In terms of international health events, the current optimization of health event disposal in China has triggered a surge in demand for masks, and social consumption has played a significant role in pulling medical melt blown fabric materials. The domestic and foreign demand has not significantly helped. However, the supply of meltblown materials in the market has been abundant for a long time, and domestic meltblown materials and cloth enterprises have a high degree of starting saturation. Therefore, the increase in the price of melt blown materials was less than expected. It is expected that the short-term market will continue to strengthen.
SunSirs PP analysts believed that: the demand for melt blown materials in the polypropylene market soared this week, and some production lines of the chain changed production, resulting in the rise of the whole PP line. The market of raw propylene is rising, and terminal enterprises just need to strengthen their efforts to follow up the volume. Trading on the floor improved, but the buyer was cautious in its operation. It is expected that China PP market will continue to operate strongly in the short term.
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