According to the Commodity Market Analysis System of SunSirs, the PP market has recently experienced a decline in prices, with prices of various wire drawing brands decreasing. As of January 8th, the mainstream quoted price for T30S (wire drawing) by domestic producers and traders is around 7,628.57 RMB/ton, with a decrease of -0.28% compared to the average price level at the beginning of the month.
Industry chain: In terms of PP raw materials, the news of OPEC's reduction in international crude oil production has supported the market, coupled with recent local tension in shipping, leading to price recovery and increase. Propylene has been boosted by crude oil, with prices rising accordingly. PDH is also driven by the energy sector, with cost support rising. The methanol market is relatively stable. The upstream raw materials are generally improving, and the overall support for PP is still acceptable.
The raw materials in all directions tend to be stronger, and the cost side supports PP more strongly. In terms of industry load, the average load of the polypropylene industry was around 73% last week, a narrow increase compared to the previous period. The overall supply of goods is abundant, and the inventory situation has increased, leading to increased pressure on on-site supply. In terms of demand, downstream plastic weaving production is maintained at below 40%, while the production rates of film materials and injection molding enterprises are maintained at around 65% and 59%, with an overall decline in position. Terminal enterprises maintain cautious operations in purchasing goods, with poor trading activity on the exchange and an overall weak market for wire drawing materials.
In terms of fiber materials, according to the commodity market analysis system of SunSirs, as of January 8th, the spot price of domestic fiber PP has also increased. The mainstream quoted price for domestic producers and traders of Z30S (fiber) is around 7,612.50 RMB/ton, with an increase or decrease of -0.81% compared to the average price at the beginning of the month, and a decrease of 4.45% compared to the same period last year. Recently, the main downstream non-woven fabric enterprises of PP fiber materials have seen a narrow decrease in load, with an operating rate of over 38%. The digestion speed of end products has slowed down, and the demand for fiber materials in the market is relatively weak, which lacks support for the price of non-woven fabrics. It is expected that there will be no breakthrough in downstream procurement before the holiday, and fibers may continue to be weakly sorted.
In terms of melt blown materials, the melt blown PP market has seen a narrow increase this week. As of January 8th, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of SunSirs is about 8,062.50 RMB/ton. Compared with the average price level at the beginning of the month, the price has increased or decreased by -0.15%, with a year-on-year decrease of 26.26%. At present, the demand for facial protection in China is generally high, and the impact of winter climate on the consumption of medical melt blown fabric materials is not significant. There is also no significant boost in domestic and foreign demand. In addition, downstream factories have entered a pre holiday mode, resulting in a decrease in overall operating rates. It is expected that the melt blown material market will continue to be weak and stable.
PP analysts from SunSirs believe that the polypropylene market fluctuated and fell last week. The trend of upstream raw materials is good, and the support from the cost side for the market is still acceptable. Terminal enterprises generally start production, while purchasing operations maintain weak and rigid demand. The load of PP equipment has slightly decreased, but there has been an accumulation of inventory and an increase in supply pressure. At present, PP is still in a weak supply-demand pattern, with insufficient market buying. It is expected that the PP market will continue to operate weakly in the short term.
If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.