SunSirs: The Market Situation is Weak, China PP Market is Weak and Volatile

According to the commodity market analysis system of SunSirs, the PP market was weak in early December, with prices of various wire drawing brands generally falling. As of December 8th, the mainstream quoted price for T30S (wire drawing) by domestic producers and traders is around 7,571.43 RMB/ton, with a rise or fall of -1.03% compared to the initial average price level.

Industry chain: In terms of PP raw materials, the recent news of OPEC reduction in international crude oil production has settled, and prices have rebounded from a low level. However, due to weak demand and high inventory levels, the spot price of propylene has experienced a significant decline. In terms of PDH, prices have rebounded due to the recovery of natural gas and propane transportation capacity. The methanol market is relatively stable. Upstream raw materials fluctuate, and overall support for PP is weak.

The raw materials flow in different directions is inconsistent, and the cost side has average support for PP. In terms of industry load, the average load of the polypropylene industry in early December was around 73%, with limited changes compared to the end of November. The overall supply of goods is abundant, and it is expected that production will steadily decline in the future, but the magnitude is not significant, and the pressure on on-site supply is not prominent. In terms of demand, downstream plastic weaving production is maintained at around 43%, and the production rate of film materials and injection molding enterprises is maintained at over 60%. The overall position remains stable. Terminal enterprises maintain cautious operations in purchasing goods, with poor trading activity on the exchange, resulting in an overall decline in the wire drawing market.

In terms of fiber materials, according to the commodity market analysis system of SunSirs, as of December 8th, the spot price of domestic fiber PP has also declined. The mainstream quoted price for domestic producers and traders of Z30S (fiber) is around 7,575 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 5.31% compared to the same period last year. Recently, the main downstream non-woven fabric enterprises of PP fiber materials have maintained a stable load, with an operating rate of over 39%. The digestion speed of end products is relatively strong due to frequent outbreaks of influenza, and the demand for fiber materials in the market is increasing narrowly, but the support for non-woven fabric prices is not significant. It is expected that the market for fiber materials will continue in the short term, and it is recommended to closely monitor the domestic supply and demand situation.

In terms of melt blown materials, the melt blown PP market saw a narrow decline in early December. As of December 8th, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of SunSirs is about 8162.50 RMB/ton. Compared with the average price level at the beginning of the month, the price has increased or decreased by -0.91%, with a year-on-year decrease of 9.64%. At present, the demand for facial protection in China has not increased significantly, and the impact of seasonal climate on the consumption of medical melt blown fabric materials is not yet significant. There is also no significant boost in domestic and foreign demand. It is expected that the melt blown material market will maintain a narrow consolidation trend.

PP analysts from SunSirs believe that the polypropylene market weakened in early December. Upstream raw materials have mixed trends, with weak support from the cost side for the market. Terminal enterprises maintain their initial level of production, and their procurement operations tend towards a small amount of rigid demand. The PP device load is generally stable, with a slight expected decline in the future. At present, the supply and demand of PP are weak, and the market momentum is low. It is expected that the PP market will maintain a narrow and weak operation in the short term.

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