SunSirs: Downstream Follow-up Slowed Down, China PP Fluctuated narrowly in June

According to the data monitor of SunSirs, the trend of China domestic PP market in June was narrow and strong, with different brands of materials up and down. As of June 30, the mainstream offer price of T30S (wire drawing) of domestic manufacturers and traders was about 7,850.00 RMB/ ton, which was 2.61% higher than the average price at the beginning of the month.

Market Analysis

In terms of propylene upstream of polypropylene, according to the data from the bulk list of SunSirs, the domestic propylene (Shandong) market price experienced two and a half rounds of ups and downs in June, with 6,643 RMB/ ton at the beginning of the month, 6,845 RMB/ ton at the end of the month, with a monthly increase of 3.04%; the monthly high price appeared on June 4, at 6,906 RMB/ ton, and the monthly low price appeared on June 13, 6,498 RMB/ ton, with a monthly amplitude of 5.91%. At present, the market turnover is between 6,750 and 7,050 RMB/ ton, and the mainstream price is about 6,850 RMB/ ton. At present, the pressure of propylene manufacturers to ship is small; there are many sets of devices to transmit maintenance information.

Upstream propylene trend in June strong shock, PP (wire drawing) market in last month was relatively mild, but the market direction was still strong performance. According to the data monitored by SunSirs, the lowest point in June appeared at 7,650.00 RMB/ ton at the beginning of the month, and the highest point appeared at 7,850.00 RMB/ ton on June 18. The monthly increase and amplitude were both 2.61%. The index showed that the domestic spot price of PP (wire drawing) fluctuated upward.

According to the data monitored by the business agency, as of June 30, the mainstream offer price of domestic manufacturers and traders Z30S (fiber) was about 7,816.67 RMB/ ton, 0.89% higher than the average price at the beginning of the month. At present, the domestic PP (fiber) price market is in line with PP (drawing) pace, the lowest point is 7,750 RMB/ ton at the beginning of the month, and fluctuates after rising.

The market of PP melt blown material is not satisfactory. At present, the price of domestic PP (melt blown) material has dropped greatly. According to the price of SunSirs, as of June 30, the average quoted price of melt blown PP for melt index 1500 was 19,333.33 RMB/ ton. The production of meltblown cloth in many places in China is facing rectification. The epidemic situation of COVID-19 in China was stable, and the demand for epidemic prevention materials decreased rapidly, which resulted in the periodic oversupply. The explosive increase of participants in the production of PP meltblown materials has led to the uneven quality of PP meltblown materials and the "diving" in price.

Market F Forecast

SunSirs PP analysts believe, in June, China domestic PP spot market was stronger. Upstream propylene market high consolidation strong supported for PP. PP (drawing) is mainly operated with high price, and PP (fiber) was also strong. PP (melt blown) demands weakened, prices fell sharply. At present, the reduction of the petrochemical plant's stock is slowing down, and the petrochemical plant's offer is intended to support the price. PP was generally helped by the recovery of demand, and the tight supply situation improved at the end of the month. The operating rate of downstream factories is average, and the stock order can be purchased as soon as it is used, which conflicts with high price goods. Business mentality is temporarily stable, actual trading is general. PP market is expected to weaken; it is suggested to pay attention to the further trend of supply and demand.

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