According to the Commodity Market Analysis System of SunSirs, there has been a recent decline in the PP market, with prices of various wire drawing brands decreasing at the end of the month. As of March 29th, the mainstream quoted price for T30S (wire drawing) by domestic producers and traders is around 7,742.86 RMB/ton, up or down +0.74% from the beginning of the month.

Industry chain: In terms of PP raw materials, although the international crude oil market has stopped falling and rebounded in the short term, the demand in the medium term is relatively weak, and the support effect on the cost side of oil based PP is ambiguous. In terms of propylene, domestic sales are not smooth, with a broad decline followed by a narrow rebound, providing loose support for propylene to PP production. Methanol and propane have been relatively stable recently, supporting PP horizontally. Upstream raw materials fluctuate, and the comprehensive support on the cost side, PP, weakens.

Overall, the raw material market has remained stable with some weakness, which has provided loose support for the PP cost side. In terms of industry load, there has been a narrow decline, with an average load of around 74% this week. At the end of the month, there were some production line maintenance plans, coupled with the situation where new production capacity was not fully implemented in March, and the market supply did not reach the expected level. At the same time, the inventory position remained generally stable this week, and the increase in market supply pressure was not significant. In terms of demand, the load of terminal enterprises is generally stable and small, with downstream PP enterprises such as plastic weaving, film materials, and injection molding having comprehensive operating rates of about 40%, 65%, and 57%, respectively. The replenishment operation of enterprises is average, and the trading atmosphere on the market is not strong. The overall market for wire drawing materials is long and short, and prices have rebounded, leading to a previous super increase.

In terms of fiber materials, according to the commodity market analysis system of SunSirs, as of March 29th, the spot price of domestic fiber PP has also increased. The mainstream quoted price for domestic producers and traders of Z30S (fiber) is around 7,625 RMB/ton, with an increase or decrease of 1.50% compared to the average price at the beginning of the month, and a decrease of 1.45% compared to the same period last year. This week, the main downstream non-woven fabric enterprises of PP fiber materials saw a low level of load, with an average operating rate of around 26%. The trading volume in the non-woven fabric market is weak, with the main activity leaning towards contract delivery. The overall inventory of fiber materials is on the rise, coupled with the average digestion rate of end products, and it is expected that the fiber material market will continue to consolidate.

In terms of melt blown materials, the melt blown PP market remained stable and organized this week. As of March 29th, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of SunSirs is about 8,012.50 RMB/ton. Compared with the average price level at the beginning of the month, the increase or decrease is +0.16%, and there is a 7.10% decrease compared to the same period last year. At present, the demand for facial protection in China is generally high, and the consumption of medical melt blown fabric materials is not significantly driven. There is also no significant boost in domestic and foreign demand. In addition, downstream factories have a low load, resulting in new orders leaning towards loose orders. 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 has fallen this week. The overall trend of upstream raw materials is stable, moderate, and weak, with weakened support from the cost side for the market. The tightening of PP supply at the end of the month is expected to provide some supply side benefits. But terminal enterprises operate steadily, stock up is necessary to maintain production, and on-site trading is average. It is expected that the PP market will consolidate and operate in the short term.

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