According to the data monitored by SunSirs, the PP market generally fell in August, and the spot price of wire drawing brand fluctuated and decreased. As of August 31, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8,058.33 RMB/ ton, up or down by -2.22% compared with the average price at the beginning of the month.

Market analysis

Industrial chain: on the upstream side, the propylene market center continued to move downward in August, and the staged rebound was insufficient. Especially in the northern region, the price was lower than 7,000 RMB/ ton. Although the price began to rise at the end of the month, the upward resistance was large, with more falling and less rising. On the cost side, the focus of international oil price has dropped significantly this month, and the cost support has weakened, which has a certain negative impact on the propylene price. On the supply side, the on-site inventory is on the high side, the pressure of enterprises to take goods is not reduced, and the main method is to take goods at a lower price.

The price of propylene fell, and the cost side of PP was poorly supported in the whole month. From the perspective of market performance, the follow-up rebound of purchasing is narrow. Traders have a general attitude, and the offer is subject to the market. It is expected that the spot market of PP wire drawing materials will be stronger in the short term.

In terms of fiber materials, according to the data monitored by the business agency, as of August 31, the spot price of domestic fiber PP was weak. The mainstream offer price of Z30S (fiber) from domestic manufacturers and traders is about 8,016.67 RMB/ ton, up or down by -2.63% compared with the average price at the beginning of the month, with a year-on-year decrease of -5.13%. It is expected that the fiber market will continue to operate in the short term.

In terms of meltblown materials, the market of meltblown PP in this month fluctuated and fell. As of August 31, the average price of domestic meltblown material sample enterprises monitored by the business agency was about 9,166.67 RMB/ ton, which was -2.65% higher than the average price at the beginning of the month, and -0.72% lower than the same period last year. In terms of international health events, the current situation in various countries is still not optimistic, and the recent explosive development in neighboring Japan. There is a rebound in some areas of China, but the overall epidemic prevention pressure is not high. Medical meltblown cloth materials are in the off-season of consumption, and the domestic and foreign demand has not been significantly helped, which does not support the spot price. There is sufficient inventory of meltblown materials in the market, and the saturation of domestic meltblown materials and cloth enterprises is high. It is expected that the recent market of meltblown PP will still be dominated by weak operation.

Market forecast

SunSirs PP analysts believe that the polypropylene market fell in August, the raw material propylene market fell, at the end of the month, the far-end cost of crude oil rose, and the cost of PP was generally supported. The demand of terminal enterprises is slowly warming up, and the offers of merchants follow the market. It is expected that the PP market in China will be dominated by consolidation in the near future.

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