SunSirs: Demand Shrinks and Inventory Increases, China PP Market Turns Down

According to the data monitored by SunSirs, the PP market in the first ten days of January turned from strong to weak, the drawing brand fell in shock, and the fiber products also fell. As of January 9, the mainstream price of T30S (wire drawing) offered by domestic producers and traders was about 7,741.67 RMB/ton, up and down by -1.48% compared with the average price at the beginning of the month.

Industrial chain: in the upstream, the recent consolidation of the propylene market, the overall market fluctuation is limited, and the price remains stable. The overall inventory of Shandong propylene market is controllable, and the refinery offer is firm. International oil prices plunged last week, affecting the cost side and showing signs of price loosening. The current demand of propylene market needs to be improved, and the preparation of goods before the holiday is coming to an end. It is expected that the propylene market will be sorted and operated in a narrow range.

The price of propylene was stable and slightly changed, and the finishing was weak. In the first ten days of January, PP cost support was maintained. In terms of industry load, last week, the PP polymerization enterprises were both overhauled and resumed work, and the industry load was on the high side to adjust the operation. The supply of goods in the field is sufficient, and the inventory position is rising rapidly. In terms of demand, the operating rate of the main downstream plastic knitting enterprises increased in a narrow range, and decreased year-on-year. The stock situation of terminal enterprises is not as expected, the market momentum is low, and the spot price is weak.

In terms of fiber materials, according to the data monitored by SunSirs, as of January 9, the spot price of domestic fiber PP was generally flat. The mainstream quoted price of domestic producers and traders Z30S (fiber) is about 7,916.67 RMB/ton, with a rise of -2.66% compared with the average price at the beginning of the month, and a decrease of -4.23% year-on-year. In the early stage, the load of downstream non-woven enterprises, the main force of PP fiber material, rose, and the demand of terminal enterprises tended to fall before the festival in the near future. The digestion speed of non-woven end products is acceptable, and the enterprises began to be cautious about the replenishment of fiber PP due to the approaching holiday. It is expected that the consolidation operation will be maintained in the short term.

In terms of melt-blown materials, the melt-blown PP market stagnated in the first ten days of January. As of January 9, the average price quoted by the domestic melt-blown material sample enterprises monitored by the Business Society was about 10,866.67 RMB/ton. Compared with the average price level at the beginning of the month, the increase was -2.4%, with a year-on-year increase of +14.19%. In terms of international health events, the optimization of the disposal of health events in China last month led to an increase in the demand for masks. Social consumption has an obvious pull on medical melt-blown cloth materials, but the recent demand tends to ease. Domestic and overseas demand has not been significantly boosted. At present, the supply of melt-blown materials in the market is abundant for a long time, and the saturation of domestic melt-blown materials and cloth enterprises is high. Therefore, the price of melt-blown materials may be stable at the present time when the demand momentum slows down.

PP analysts of SunSirs believe that the polypropylene market fell in a narrow range in the first ten days of January. The market of raw material propylene is stable and small, and the cost support is maintained. As soon as the terminal enterprises gradually entered the pre-holiday mode, the intra-field trading began to weaken, and the buyers were cautious to wait and see. It is expected that the rapid rise of inventory will have a negative impact on PP market, and China PP market may continue to be weak in the short term.

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