According to the data monitored by SunSirs, the PP market fluctuated and rose this week, and the spot prices of various wire drawing brands were generally adjusted. As of September 8, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8,226.67 RMB/ ton, up or down by +0.72% compared with the average price at the beginning of the month.
Industrial chain: in the upstream, the propylene market rebounded strongly after falling this week. At present, there is a phased contraction in the supply side, and some enterprises have been restarted and overhauled. Affected by this, the spot in the market is reduced, supporting the recovery of the price market. However, after the price rebound, there was strong resistance in the downstream market, and the acceptance of the demand side for high-priced goods was general. At present, the Mid Autumn Festival holiday is coming, and the holiday of enterprises is bound to affect propylene consumption, and the industry tends to be bearish in the future. Propylene is expected to have some rising resistance and may fall after the holiday. However, the recovery date of some enterprises that reduced their burdens has not been set, and the supply side support is expected, which may narrow the decline in the future market.
Propylene prices rose, and PP cost side support strengthened this week. In terms of industry load, the operating rate of PP polymerization enterprises has changed slightly recently, with a narrow increase of less than 1% compared with last week. The overall load of domestic industry is about 77%. In terms of inventory, due to the gradual expansion of demand in the peak season and the increase of stocking activities, the total domestic PP inventory fell by one percentage point to about 730000 tons this week. In terms of terminal enterprises, power and production restrictions of some downstream factories were lifted, and the overall load was increased. The operating rates of plastic knitting enterprises and BOPP enterprises have rebounded significantly, and the just needed stock volume has increased. The sample traders responded that the orders increased, the mentality strengthened, and the offer followed the petrochemical plants.
In terms of fiber materials, according to the data monitored by the business agency, as of September 8, the spot price of domestic fiber PP was weak. The mainstream offer price of Z30S (fiber) from domestic manufacturers and traders is about 8,133.33 RMB/ ton, up or down by + 1.46% compared with the average price at the beginning of the month, with a year-on-year decline of -4.13%. This week, the load of the main downstream non-woven fabric enterprises of PP fiber materials increased narrowly by 2.5%, the offer of spunbonded non-woven fabrics was stable, and the demand of end enterprises increased slightly. The digestion speed of non-woven end products is OK, and the enterprise's replenishment of fiber PP is biased towards just getting the goods. Driven by the decline of total plastic inventory and the rise of wire drawing materials, combined with the upcoming release of downstream demand in the traditional peak season, it is expected that the fiber market will rise in the short term.
In terms of meltblown materials, this week's meltblown PP market is mainly stable, with a narrow rise. As of September 8, the average quotation of domestic meltblown material sample enterprises monitored by business club was about 9,233.33 RMB/ ton, up or down by +0.73% compared with the average price at the beginning of the month, up by +0.36% year-on-year. In terms of international health events, the current situation in various countries is still not optimistic, and the recent explosive development in neighboring Japan. Some areas in China have rebounded, but the overall epidemic prevention pressure is not strong, and the pulling effect on medical meltblown cloth materials is limited. Domestic and foreign demand has no obvious help, and the support for spot prices is poor. The stock of meltblown materials in the market is sufficient, and the saturation of domestic meltblown materials and cloth enterprises is high. It is expected that the recent market of meltblown PP will still run sideways.
SunSirs PP analysts believe that the polypropylene market has surged this week, the raw material propylene market has rebounded strongly after falling, and the support of PP cost end has strengthened. The demand of end enterprises has gradually entered the "golden nine" mode, the mentality of businessmen has become stronger, and the offer has followed the rise of petrochemical plants. However, with the completion of the phased delivery of downstream enterprises around the Mid Autumn Festival, it is expected that China PP market may rise and be hindered in the short term.
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