SunSirs: Cost Support is Strong, China PP Market is generally Stable

According to the commodity market analysis system of SunSirs, the PP market has been experiencing significant stability and slight fluctuations recently, with prices of various wire drawing brands fluctuating. As of April 19th, the mainstream quoted price for T30S (wire drawing) by domestic producers and traders is around 7,821.43 RMB/ton, up or down +0.74% from the beginning of the month.

Industry chain: In terms of PP raw materials, the international crude oil market is still operating at a high level due to geopolitical tensions, which has a strong support effect on the cost side of oil to PP production. The simultaneous strengthening of methanol and propane prices provides strong support for PP, while the cost support for PP remains consistently strong.

Overall, the active use of raw materials has strengthened support for the cost side of PP. The industry load has rebounded narrowly, with an average load of around 75% in recent days. The early production line maintenance was relatively concentrated, and companies such as Shenhua Baotou and Donghua Ningbo have maintenance plans. The market supply has gradually decreased, and recently the inventory position of production enterprises has decreased, reducing market supply pressure. In terms of demand, the load of terminal enterprises is generally stable and small, with downstream PP enterprises such as plastic weaving, film materials, and injection molding having comprehensive operating rates of about 43%, 65%, and 57%, respectively. The replenishment operation of enterprises is mainly based on demand, and the trading atmosphere on the market is weak. The market for wire drawing materials is mainly focused on the cost side, and prices are narrow in consolidation.

In terms of fiber materials, according to the commodity market analysis system of SunSirs, as of April 19th, the spot price of domestic fiber PP has also remained stable. The mainstream quoted price for domestic producers and traders of Z30S (fiber) is around 7,675 RMB/ton, with an increase or decrease of +0.66% compared to the average price at the beginning of the month, and a decrease of 0.49% compared to the same period last year. Recently, the main downstream non-woven fabric enterprises of PP fiber materials have seen a narrow increase in load, with an average operating rate of around 30%. The trading volume in the non-woven fabric market is average, and orders are mainly based on contracts. The digestion speed of end products is average, and it is expected that the fiber material market will continue the current consolidation market.

In terms of melt blown materials, the market for melt blown PP has been stable and rising recently. As of April 19th, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of SunSirs is about 8,037.50 RMB/ton. Compared with the average price level at the beginning of the month, the increase and decrease is +0.31%, with a year-on-year decrease of 4.03%. At present, the demand for facial protection in China is generally high, and the consumption of medical melt blown fabric materials is not significantly driven. In addition, the downstream factories have low load, and most of the new orders are scattered. Melt blown materials are more inclined to link with the cost side market, and it is expected that the melt blown material market will continue to maintain stability and consolidate the market.

PP analysts from SunSirs believe that the polypropylene market has remained stable with minor fluctuations this week. The overall trend of upstream raw materials is relatively strong, and the support from the cost side for the market is still acceptable. The supply of goods has been tightened, and the supply pressure has been partially alleviated. The production of terminal enterprises is stable, and stocking is necessary to maintain production. The on-site momentum is average. It is expected that the PP market will remain stagnant in the short term.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.