SunSirs: Upstream maintains Strength, while China PP Market consolidates at a High Level

According to the Commodity Market Analysis System of SunSirs, the PP market has recently experienced a high level of consolidation, with various wire drawing brands operating in a volatile manner. As of August 11th, the mainstream quoted price of T30S (wire drawing) by domestic producers and traders is around 7,492.86 RMB/ton, with an increase or decrease of+0.58% compared to the average price level at the beginning of the month.

Industry chain: In terms of upstream and recent PP raw materials, international crude oil rebounded and rose this week, while the propylene market in Shandong was driven by fluctuations and gains. The maintenance of PDH devices in Shandong enterprises has led to a decrease in on-site supply, which has boosted market information. Overall, there are many positive factors in the upstream of polypropylene.

The strength of raw materials in all directions provides strong support for PP at the cost end. In terms of industry load, the overall industry load remained at around 80% last week, with a slight increase in position compared to the previous period. The overall supply of goods was stable, and the on-site supply of goods was sufficient. In terms of demand, it has been relatively flat compared to the previous period, with downstream plastic weaving operations maintaining a slight decrease of over 40%. In terms of film materials and injection molding, the operating rate of enterprises has remained around 60%, and the overall position is average. The stocking situation of terminal enterprises has been narrowed, and the degree of procurement replenishment by some enterprises has decreased.

In terms of fiber materials, according to the Commodity Market Analysis System of SunSirs, as of August 11th, the spot price of domestic fiber PP has increased. The mainstream quoted price of domestic producers and traders for Z30S (fiber) is around 7,487.50 RMB/ton, with an increase or decrease of +0.50% compared to the average price at the beginning of the month, and a decrease of -8.32% compared to the same period last year. Recently, the downstream non-woven fabric enterprises, the main force of PP fiber materials, have maintained a low horizontal load, and the overall operating rate has risen narrowly at around 32%. The demand for fiber materials in the market is weak, and the digestion speed of non-woven end products is average. Enterprises have average efforts in replenishing fiber PP. The price increase is due to the strengthening of polypropylene costs, and it is expected that fiber materials may continue to operate in a stronger direction in the short term.

In terms of melt blown materials, last week's melt blown PP market fluctuated and rose. As of August 11th, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of SunSirs is around 8,200 RMB/ton. Compared with the average price level at the beginning of the month, the increase and decrease is +1.23%, with a year-on-year decrease of 13.01%. At present, the domestic and international news of the health incident has basically subsided, and the consumption of medical meltblown fabric materials is weak. There is also no significant boost in domestic and foreign demand. Affected by the strengthening of the cost side, the factory prices of melt blown material enterprises have increased significantly. It is expected that the melt blown material market may maintain a volatile consolidation trend.

PP analysts from SunSirs believe that last week's high consolidation in the polypropylene market. The overall trend of upstream raw materials is relatively good, with strong support from the cost side for the market. The construction of terminal enterprises continues to maintain the previous level, and the narrow range of goods acquisition has decreased. It is expected that the PP market may remain stagnant in the short term.

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