According to the Commodity Market Analysis System of SunSirs, the PP market fluctuated in mid June, with overall fluctuations in various wire drawing brands. As of June 21st, the mainstream quoted price of T30S (wire drawing) by domestic producers and traders is around 7,164.29 RMB/ton, with a +1.11% increase or decrease compared to the average price level at the beginning of the month.
Industry chain: On the upstream side, the propylene market in Shandong has recently seen a slight increase. Due to the low price of propylene in the early stage and downstream short supply entering the market, the market trading atmosphere has improved, and the inventory pressure of propylene enterprises has relatively decreased, leading to a slight increase in prices. On the news side, crude oil prices were weak and volatile, dropping to a low level, dragging down market confidence. It is expected that with the end of the downstream procurement cycle in the future, the propylene market will consolidate and operate in the short term.
The rebound in propylene prices has improved the cost support for PP. In terms of industry load, the overall industry load has been maintained at around 77% recently, with a narrow adjustment compared to the previous period, and the overall supply of goods is stable. There is sufficient supply of goods on the site, and the load of multiple devices continued to decrease last week. The relief of supply pressure may gradually become apparent. However, the demand tends to be weak, with about 50% of downstream plastic weaving and about 60% of membrane material enterprises operating. Although there have been improvements, the overall position is not high, and the stock situation of terminal enterprises is limited, with procurement maintaining production as the main focus.
In terms of fiber materials, according to the Commodity Market Analysis System of SunSirs, as of June 21, the spot price of domestic fiber PP has declined. The mainstream quoted price of domestic producers and traders for Z30S (fiber) is around 7,162.50 RMB/ton, with an increase or decrease of +0.17% compared to the average price at the beginning of the month, and a decrease of -17.20% compared to the same period last year. Recently, the low load of downstream non-woven fabric enterprises, the main force of PP fiber materials, has continued horizontally, with an overall operating rate of around 30%. The weak demand for fiber materials in the market has dragged down the digestion speed of non-woven fabric end products. Enterprises have lagged behind in their replenishment operations for fiber PP, and price increases have been hindered. It is expected that in the short term, fiber materials may continue to undergo narrow adjustments due to supply-demand conflicts.
In terms of melt blown materials, the melt blown PP market continued to be weak in mid June. As of June 21st, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of the SunSirs is about 7,925 RMB/ton. Compared with the average price level at the beginning of the month, the price has increased or decreased by -17.59%, with a year-on-year decrease of 16.30%. At present, there is little domestic news on health events, and local social news is powerless to drive the consumption of medical meltblown fabric materials. There is also no significant boost in overseas demand, with traders giving up profits and taking orders, resulting in excessive parking of melt blown material production lines. It is expected that the melt blown material market may maintain a weak consolidation market.
PP analysts from SunSirs believe that the polypropylene market fluctuated and adjusted in mid June. The raw material propylene market has stopped falling and rebounded, and the support from the cost side for the market is average. The operating rate of terminal enterprises is poor, and the demand for goods tends to maintain production, resulting in weak demand release. The decrease in market orders has hindered the continued rise of the market, and it is expected that China PP market may maintain a weak consolidation trend in the short term.
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