According to the data monitored by SunSirs, the PP market was corrected after the rise in September, and the spot prices of all wire drawing brands rose and fell. As of September 30, the mainstream offer price of T30S (wire drawing) by domestic manufacturers and traders was about 8,158.33 RMB/ ton, up or down by +1.24% compared with the average price at the beginning of the month.
Industrial chain: upstream, propylene market rose this month. In the middle of the month, the supply side contracted periodically, and some enterprises restarted and overhauled. Affected by this, spot goods on the market decreased, supporting the price rise. The demand of downstream enterprises is higher due to the removal of power and production restriction, traditional peak demand season and other factors. Although the fluctuation of crude oil in September superimposed on the impact of macroeconomic pessimism, the supply and demand of propylene market were weak. At the same time, the export data in July and August showed that propylene imports decreased, import resources decreased, domestic propylene capacity utilization increased, and the market rose on support.
The price of propylene rose, the price of crude oil at the far end fluctuated, and the PP cost in September was generally supported. In terms of industry load, the operating rate of PP polymerization enterprises was adjusted by a narrow margin in September, and the overall load of the domestic industry was more than 70%. In terms of inventory, due to the rise of PP price in the middle of the month, buyers have limited acceptance of the high offer. In the middle of the month, there is a certain accumulation of inventory, while the domestic inventory at the end of the month has decreased significantly, so the pressure on the spot is fair. In terms of terminal enterprises, the load of terminal enterprises is generally higher in the peak demand season. Plastic weaving enterprises and BOPP enterprises had a relatively significant demand, but the consumption growth in the second half of the month was less than expected, the merchants' mentality weakened, and the offer fell back.
In terms of fiber materials, according to the data monitored by the business community, as of September 30, the spot price of domestic fiber PP had risen in a narrow range. The mainstream offer price of domestic producers and traders of Z30S (fiber) is about 8,200 RMB/ ton, which is+2.29% higher than the average price at the beginning of the month, and -10.05% lower than the same period last year. In this month, the load of downstream non-woven enterprises, the main force of PP fiber materials, was stable, the offer of spunbonded non-woven fabrics was stable, and the demand of terminal enterprises was operating in a narrow range. The digestion speed of nonwoven terminal products is acceptable, and the enterprise prefers to just take the goods for fiber PP replenishment. The delivery and investment of fiber materials on the site are general, and the fiber material market is firmly supported by the cost side, which may still maintain a stable operation in the short term.
In terms of meltblown materials, the meltblown PP market fell by a narrow margin in September. As of September 30, the average quotation of domestic meltblown material sample enterprises monitored by the business community was about 9,100 RMB/ ton, up or down by -0.73% compared with the average price at the beginning of the month, and down by -4.21% year-on-year. In terms of international health events, the current situation in various countries is still not optimistic, and neighboring Japan has witnessed explosive development recently. There is rebound in some areas of China, but the overall epidemic prevention pressure is not strong, and the pulling effect on medical melt blown fabric materials is limited. The domestic and foreign demand has not significantly helped, and the support for spot prices is poor. The inventory of melt blown materials in the market is sufficient, and the saturation of domestic melt blown materials and cloth enterprises is high. It is expected that the recent market of melt blown PP will still run sideways.
SunSirs PP analysts believed that the overall polypropylene market rose slightly in September, the raw propylene market continued to rise, the far upstream crude oil fluctuated, and the PP cost side support was fair. Terminal enterprises just need to support the spot, but the support has weakened after the price rise. The social inventory position at the end of the month was not high, and the buyer and seller were cautious in their operation. The traditional peak season demand volume is lower than expected, and China PP market is expected to be adjusted in the near future.
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