According to the commodity market analysis system of SunSirs, the PP market has rebounded this week, with prices of various wire drawing brands undergoing a corrective correction. As of January 26th, the mainstream quoted price for T30S (wire drawing) by domestic producers and traders is around 7,671.43 RMB/ton, with a fluctuation of +0.28% compared to the average price level at the beginning of the month.
Industry chain: In terms of PP raw materials, the recent news of OPEC reduction in international crude oil production continues to affect the market, coupled with the continued tension in shipping, crude oil prices are supported and continue to rise. Although there has been a decrease in trading volume for propylene this week, prices have continued to strengthen due to upstream influences. On the PDH side, propane supply has contracted, but demand has weakened and prices have fluctuated. The methanol market is relatively stable. Upstream raw materials fluctuate, and overall support for PP is still acceptable.
The raw material flow in all directions is average, and the cost side's support for PP is temporarily stable. In terms of industry load, the production and maintenance of some production lines in the early stage have returned, and the average load of the polypropylene industry this week was around 76%, which is basically the same as last week. The supply of goods remains abundant, and the inventory situation is relatively stable compared to the previous period, with limited changes in on-site supply pressure. In terms of demand, the holiday situation of terminal enterprises has increased, and downstream PP enterprises such as plastic weaving, film materials, and injection molding are operating at a low comprehensive operating rate. But this week, some companies have conducted pre holiday restocking operations, and the trading activity on the market has increased. The overall market for wire drawing materials has been driven up.
In terms of fiber materials, according to the commodity market analysis system of SunSirs, as of January 26th, the spot price of domestic fiber PP has also increased. The mainstream quoted price for domestic producers and traders of Z30S (fiber) is around 7,550 RMB/ton, with an increase or decrease of -1.63% compared to the average price at the beginning of the month, and a decrease of 4.63% compared to the same period last year. Recently, the main downstream non-woven fabric enterprises of PP fiber materials have seen a slight decrease in load, with an operating rate of around 38%. The digestion speed of end products is sideways, and the market demand for fiber materials is mainly based on remote contracts, which generally supports the price of non-woven fabrics. The support for this week's upward trend mainly comes from upstream, and fibers may continue to be weakly consolidated.
In terms of melt blown materials, the melt blown PP market has seen a narrow increase this week. As of January 26th, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of SunSirs is about 8,000 RMB/ton. Compared with the average price level at the beginning of the month, the increase and decrease is -0.93%, and there is a 20% decrease compared to the same period last year. At present, the demand for facial protection in China is generally high, and the impact of winter climate on the consumption of medical melt blown fabric materials is not significant. There is also no significant boost in domestic and foreign demand. In addition, there are not many new orders from downstream factories, resulting in a decrease in overall operating rates. It is expected that the melt blown material market will continue to be weak and stable.
PP analysts from SunSirs believe that the polypropylene market has shown a recovery and upward trend last week. The trend of upstream raw materials has been stable, and the support from the cost side for the market is still acceptable. The production of terminal enterprises is relatively low, and some purchasing operations are on the rise. The PP device is mainly loaded horizontally, with limited supply pressure fluctuations. However, the pre holiday market is becoming increasingly strong, and it is expected that the PP market may experience limited growth in the short term.
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