According to the Commodity Market Analysis System of SunSirs, the PP market has been fluctuating recently, with overall fluctuations in various wire drawing brands. As of July 21st, the mainstream quoted price of T30S (wire drawing) by domestic producers and traders is around 7,335.17 RMB/ton, with an increase or decrease of 2.39% compared to the average price level at the beginning of the month.
Industry chain: On the upstream side, the domestic propylene (Shandong) market has shown poor performance last week. Due to the high prices in the early stage, the downstream transaction atmosphere has weakened, resulting in a decrease in propylene shipments. In order to stimulate sales, the price of propylene was significantly lowered last week. Currently, downstream purchasing willingness has slightly increased, and trading volume has increased. However, the market lacks effective positive signals to stimulate and the rebound is relatively small. It is expected that the propylene market will mainly operate in a weak manner in the short term.
Propylene prices have fallen, international crude oil prices are average, and cost support for PP is limited. In terms of industry load, there were some unplanned parking and maintenance incidents in the industry last week, and the overall load remained at around 74%. The location is still acceptable, and the supply of goods is generally stable. The on-site supply of goods is sufficient. In terms of demand, it tends to be weak, with the main downstream plastic weaving operating at 40% to 50%. In terms of film materials and injection molding, the operating rate of enterprises remains at the previous level, and the overall position is not high. The stocking situation of terminal enterprises lags behind, and procurement mainly maintains production.
In terms of fiber materials, according to the Commodity Market Analysis System of SunSirs, as of July 21, the spot price of domestic fiber PP has increased. The mainstream quoted price of domestic producers and traders for Z30S (fiber) is around 7,362.50 RMB/ton, with an increase or decrease of +3.15% compared to the average price at the beginning of the month, and a decrease of -9.66% compared to the same period last year. Last week, the downstream non-woven fabric enterprises, the main force of PP fiber materials, maintained a low level of load, with an overall operating rate of around 30%. The demand for fiber materials in the market is weak, and the digestion speed of non-woven end products is relatively low. Enterprises' efforts in replenishing fiber PP are average. The price increase is due to the favorable supply side of the overall inventory reduction of polypropylene, and it is expected that fiber materials may adjust their operation in the short term.
In terms of melt blown materials, last week's melt blown PP market fluctuated in a narrow range. As of July 21st, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of SunSirs is about 7,925 RMB/ton. Compared with the average price level at the beginning of the month, the increase and decrease is +0.63%, with a year-on-year decrease of 15.99%. 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 volatile consolidation trend.
PP analysts from SunSirs believe that the polypropylene market has been fluctuating and rising recently. The raw material propylene market is declining, and the remote crude oil fluctuates frequently, with average support from the cost side for the market. The operating rate of terminal enterprises is poor, and the demand for goods tends to maintain production, resulting in weak demand release. Market orders are beginning to decrease, hindering the recovery of the market. However, the overall inventory is currently low, and it is expected that the PP market may enter a consolidation market.
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