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SunSirs: Futures Pull Up, PP Spot Market Followed up in China
November 18 2020 10:29:52SunSirs(Selena)

According to the data monitored by the business agency, the domestic PP market rose steadily in the second week of November, and it was operating positively. Spot prices of various brands have increased. As of November 13, the mainstream offer price of T30S (wire drawing) of domestic manufacturers and traders was about 8,316.67 RMB/ ton, an increase of 2.05% compared with the average price at the beginning of the month.

Market Analysis

PP upstream propylene market remained stable in the first half of October and plummeted by more than 10% in the second half of October. On the whole, the current turnover of propylene market is between 6,750 RMB/ ton and 7,200 RMB/ ton, the inventory of manufacturers is controllable, and the shipment situation is still relatively ideal. The crude oil price is fair, the downstream market is good, and the propylene price has a large decline in the early stage, and has a certain rise last week. Therefore, it is expected that the propylene price may start to stabilize in the near future.

SunSirs monitoring data show that last week PP (drawing) market performance was more stable. The downstream demand was fair. In terms of inventory, petrochemicals' inventory increased significantly over the weekend at the beginning of November. Driven by the rise of futures last week, the trading atmosphere in the market turned warm and the inventory returned to the low level smoothly. As some brands were still tight spot, there was support in the market. In the near future, PP may continue the trend of positive consolidation.

According to the monitoring data of domestic fiber traders (z833.30t) as of November, the price of domestic fiber manufacturers was about 33.33 RMB. The average price was up 60.0% from the beginning of the week. Last week, the market of fiber and drawing materials was synchronous, showing a stable trend of consolidation. Due to the large price increase in the early stage, the current downstream mentality tended to be cautious. However, the contradiction between supply and demand of polyolefins has not been revealed due to the consumption peak of the double 11 Shopping Festival. In addition, PP futures rises a lot, PP (fiber) is expected to continue to rise in the near future.

PP melt blown material market recent finishing mainly, domestic PP melt blown material market spot price is still reduced. The current domestic epidemic situation is generally stable, and the demand has increased slightly in the near future. The trend of the second outbreak of overseas epidemic is obvious, many countries announced to close the city again, the non-woven fabric in the application of medical protection is sought after again, the demand is expected to rise, and the production capacity of China is expected. However, the profits of domestic meltblown cloth and material manufacturing market are seriously diluted, and it is expected that the decline of melt blown materials will be narrowed due to the influence of expanding demand in the near future.

Market Forecast

SunSirs PP agency analysts believe: in the second week of November, the domestic PP spot market was generally stable. The upstream propylene market stopped falling and turned warm, and the price callback supported the PP cost side. PP (drawing) has no inventory accumulation, the price is relatively stable. PP (fiber) market shock finishing, PP (melt blown) decline has a slowing trend. Recently, the consumption of Shopping Festival stimulated the domestic market, and PP futures rose sharply, which led to the spot price adjustment together. Downstream factory stock and purchase just by need. China PP spot is expected to continue to strengthen in the near future.


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