SunSirs: Long and Short Game, China PP Market Deadlocked

According to the data monitored by SunSirs, the PP market was in a stalemate in the first ten days of December, and the spot prices of wire drawing brands rose and fell with each other. As of December 11, the mainstream offer price of domestic manufacturers and traders T30S (wire drawing) was about 7,858.33 RMB/ton, up or down by -0.32% compared with the average price at the beginning of the month.

Industrial chain. At the beginning of the week, due to the high price last week, the downstream product profit was tightened, the commencement was reduced, and the procurement was restrained. In order to stabilize the delivery of propylene, the prices of propylene enterprises decreased successively. On the news side, the crude oil price continued to drop, further depressing the mentality of the industry. As of this Friday, Shandong's mainstream quotation was 7,400-7,450 RMB/ton.

Propylene prices fell, and recent PP cost side support weakened. In terms of industry load, the operating rate of PP polymerization enterprises this week exceeded 78%. There is pressure on the supply side. In terms of inventory, the domestic inventory position was more than 710,000 tons, a narrow decline compared with the previous period. In terms of demand, the market of downstream products is not good, among which plastic weaving enterprises and BOPP enterprises have reduced their stock. In addition to the negative impact of global macroeconomic prospects and imported inflation, the market mentality is empty, and businesses generally follow the trend.

In terms of fiber materials, according to the data monitored by SunSirs, as of December 11, the spot price of domestic fiber PP fell on the whole. The mainstream offer price of domestic producers and traders of Z30S (fiber) is about 8,000 RMB/ton, up or down 0% compared with the average price at the beginning of the month and -2.64% year-on-year. This week, the load of downstream non-woven enterprises, the main force of PP fiber materials, stabilized, the profit of spunbonded non-woven fabrics was average, and the demand of terminal enterprises was stable. The digestion speed of nonwoven end products is average, and enterprises prefer to just take the goods for fiber PP replenishment. The site is empty, and the operation of shock adjustment may still be maintained in the short term.

In terms of meltblown materials, the meltblown PP market was stable and small this week. As of December 11, the average quotation of domestic meltblown material sample enterprises monitored by SunSirs was about 9,033.33 RMB/ton, up or down by +0.37% compared with the average price at the beginning of the month, and down by -6.39% year-on-year. In terms of international health events, the current situation in various countries is still not optimistic, and the epidemic situation in China and neighboring countries has rebounded recently. However, it has limited pulling effect on medical melt blown cloth materials. The domestic and foreign demand has not significantly helped, and the support for spot prices is poor. There is abundant supply of meltblown materials in the market, and domestic meltblown materials and cloth enterprises generally start construction, but the saturation is high. Melt blown materials are mainly affected by the negative cost side, and it is expected that the short-term market will be dominated by narrow amplitude shocks.

SunSirs PP analysts believed that the polypropylene market was in a stalemate this week, and the raw propylene market rose first and then fell. The terminal enterprise just needs to pick up the goods, and the follow-up lags behind. The buyer was cautious in operation and the trading on the market was light. It is expected that in the short term, China PP market will continue to operate in a narrow range.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.