SunSirs: Demand Weakened; China PP Market Fell in a Narrow Range

According to the data monitored by SunSirs, the domestic PP market declined in the first ten days of December, and the spot prices of various brands mainly fluctuated. As of December 10, the mainstream offer price of T30S (wire drawing) of domestic manufacturers and traders was about 8,733.33 RMB/ ton, a decrease of 3.68% compared with the average price at the beginning of the month.

According to SunSirs, the upstream propylene price of PP rose continuously in late November, with an increase of more than 12%, which has certain support for the cost side of PP. According to the data monitored by SunSirs, the market of PP (drawing) in the first ten days of December was mainly organized, and some brands showed a certain decline. At present, the domestic polypropylene operating rate is high, and the supply is significantly increased, which is detrimental to the spot market.

As of December 10, the mainstream offer of Z30S (fiber) of domestic manufacturers and traders has dropped slightly compared with the beginning of the month, and the price is about 8,816.67 RMB/ ton, which is 2.76% lower than the average price at the beginning of the month. Due to the growth of domestic restorative consumption in November, the price of fiber materials has increased to a certain extent. At present, the price of fiber PP is also at a high level. At present, PP futures run in shock, and the thrust on spot is slightly insufficient. According to reports, this week, polypropylene downstream total start narrow decline, while the downstream wait-and-see atmosphere gradually rise, negative demand side. The price of far upstream crude oil has recently been boosted by news such as Iraq's attack, thus benefiting the chemical industry chain. At present, there is a lack of guidance in the market. It is expected that the price of fiber materials will be adjusted in the near future.

At the beginning of December, PP meltblown material market fluctuated, finishing the market mainly, and the price trend was dominated by supply and demand. As of December 10, the average quotation of PPH-Y1500 sample enterprises monitored by the business agency was 10,900 RMB/ ton, and the price was temporarily stable. China has entered the stage of strict prevention, control and prevention in the fourth quarter. In addition to a small-scale rebound in some areas, the situation is generally stable. The demand for epidemic prevention materials is stable, but the overall price trend is weak. There are too many suppliers in the meltblown cloth and material manufacturing market, and the profit is diluted seriously. The second outbreak trend of overseas epidemic is obvious, and many countries emphasize to announce the strict closure of cities during Christmas. The price trend of imported materials is still stable, but there is still a small demand for imported materials.

SunSirs PP analysts believe: in early December, China domestic PP spot market was slightly down. Upstream propylene market continued to be positive; there was support for PP cost side. At present, the market of PP drawing material and fiber material is stable after falling, and the decline of PP (melt blown) tends to be stable. At present, the load of downstream factories is decreasing, and the purchasing is against the high price goods source, and the transaction becomes weak. Merchants make profit and take delivery actively. It is expected that the near future China PP spot or will be affected by the cost and weak demand, and will be in shock operation.

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