SunSirs: Macro Support, China PP Market Fluctuated strongly in early November

According to the Commodity Market Analysis System of SunSirs, the PP market was mainly volatile in early November, with prices of various wire drawing brands fluctuating. As of November 12th, the mainstream quoted price of T30S (wire drawing) by domestic producers and traders is around 7,828.57 RMB/ton, which is a -1.01% increase or decrease compared to the average price at the beginning of the month.

Industry chain: In terms of PP raw materials, the domestic propylene market has experienced high volatility due to the loosening of crude oil prices. However, the overall economic environment at home and abroad has been improving recently, and it is speculated that the decline in crude oil and propylene is limited. The price of PDH has strengthened due to the increase in demand for natural gas and propane and the lag in transportation. The performance of coal is relatively positive, while the methanol market is relatively stable. Upstream raw materials fluctuate, and overall support for PP is moderate.

The market trend of raw materials varies in various directions, and the cost side support for PP is still acceptable. In terms of industry load, in early November, the average load of the polypropylene industry was over 77%, a narrow increase compared to the beginning of the month. The overall supply of goods is abundant, and it is expected that there will be a steady increase in construction in the future, with on-site supply pressure maintaining. In terms of demand, the downstream production of plastic weaving remains at over 45%, while the production rate of film and injection molding enterprises remains around 60%, and the overall position remains stable. The inventory of raw materials in terminal enterprises has decreased, but cautious operations have been maintained in purchasing goods. The trading activity on the market is average, and the overall volatility of wire drawing materials is relatively strong.

In terms of fiber materials, according to the Commodity Market Analysis System of SunSirs, as of November 12th, the spot price of domestic fiber PP has strengthened within a narrow range. The mainstream quoted price of domestic producers and traders for Z30S (fiber) is around 7,712.5 RMB/ton, with an increase or decrease of +0.49% compared to the average price at the beginning of the month, and a decrease of 4.39% compared to the same period last year. In the first ten days, the main downstream non-woven fabric enterprises of PP fiber material had a narrow adjustment in load, and the operating rate was above 38%. The demand for fiber materials in the market is orderly, and the prices of non-woven fabrics are in line with the market. The digestion of end products is concentrated in e-commerce. It is expected that in the short term, fiber materials may continue to operate in a narrow range due to the game market trend.

In terms of melt blown materials, the recent melt blown PP market has experienced narrow fluctuations. As of November 12th, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of SunSirs is around 8337.5 RMB/ton. Compared with the average price level at the beginning of the month, the increase or decrease is -0.15%, with a year-on-year decrease of 8.04%. At present, the demand for facial protection in China has returned to normal, and the consumption of medical meltblown fabric materials is generally driven. There is also no significant boost in domestic and foreign demand. It is expected that the melt blown material market may maintain a narrow consolidation market.

PP analysts from SunSirs believe that in early November, the polypropylene market saw a narrow rise. The trend of upstream raw materials fluctuates, and the support from the cost side for the market is still acceptable. Terminal enterprises maintain their initial level of construction, and their procurement operations are biased towards just needs. In the short term, the PP plant operates stably, with new production lines concentrated in next month. It is expected that the PP market may maintain a volatile and strong operation in the short term.

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