SunSirs: China PP Prices Tend to Fluctuate strongly

According to the commodity market analysis system of SunSirs, the PP market has slightly rebounded recently, with prices of various wire drawing brands increasing in a narrow range. As of December 22nd, the mainstream quoted price for T30S (wire drawing) by domestic producers and traders is around 7,635.71 RMB/ton, with an increase or decrease of -0.19% compared to the initial average price level.

Industry chain: In terms of PP raw materials, the implementation of international crude oil OPEC production reduction news in the early stage, coupled with recent tense news on shipping, has led to prices continuing to recover and rise. Propylene has been boosted by crude oil, with prices rising accordingly. PDH is also driven by the energy sector, with cost support rising. The methanol market is relatively stable. The upstream raw materials are generally improving, and the overall support for PP is still acceptable.

The raw materials in all directions tend to be stronger, and the cost side supports PP more strongly. In terms of industry load, the average load of the polypropylene industry this week was around 75%, a narrow increase compared to the previous period. The overall supply of goods is abundant, and the inventory situation is stable with some decline. The pressure on on-site supply is average. In terms of demand, downstream plastic weaving production is maintained at around 40%, while the production rate of film materials and injection molding enterprises is maintained at over 60%, and the overall position remains stable. Terminal enterprises maintain cautious operations in purchasing goods, with poor trading activity on the exchange. The overall market for wire drawing materials has risen and then stabilized.

In terms of fiber materials, according to the commodity market analysis system of SunSirs, as of December 22, the spot price of domestic fiber PP has also increased. The mainstream quoted price for domestic producers and traders of Z30S (fiber) is around 7,612.50 RMB/ton, with a 0% increase or decrease compared to the average price at the beginning of the month, and a 6.98% decrease 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, which still provides sufficient support for the price of non-woven fabrics. The dominant trend in the fiber material market is also boosted by upstream news, and it is expected that fiber materials may continue to strengthen in the short term.

In terms of melt blown materials, the melt blown PP market has seen a narrow increase this week. As of December 22, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of SunSirs is about 8,100 RMB/ton. Compared with the average price level at the beginning of the month, the increase and decrease is -1.67%, with a year-on-year decrease of 25.91%. At present, the demand for facial protection in China is generally high, and the impact of seasonal climate on the consumption of medical melt blown fabric materials is not significant. There is also no significant boost in domestic and foreign demand. It is expected that the melt blown material market will follow the overall polypropylene market and enter a stronger consolidation market.

PP analyst from SunSirs believes that the polypropylene market has rebounded this week. The trend of upstream raw materials is good, and the support for the market from the cost side is strengthening. Terminal enterprises maintain their initial level of production, while purchasing operations maintain weak and rigid demand. The load of the PP device is average, and the supply pressure is not yet significant. At present, the supply and demand of PP are still at a weak level, and the market momentum is not high. It is expected that the growth of the PP market may be hindered in the short term.

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