SunSirs: China PP Price was Adjusted in a Narrow Range in Early November

According to the data monitoring of SunSirs, the domestic price of PP wire drawing material was 7,925 RMB/ ton on October 30 and 7,975 RMB/ ton on November 7, with a weekly increase or decrease of +0.63%, which was -2.25% higher than the price on October 1.

According to the data monitoring of SunSirs, the domestic price of PP fiber material was 8,033.33 RMB/ ton on October 30, and the average price was 8,100 RMB/ ton on November 7. The weekly increase or decrease was +0.83%, which was -1.22% higher than the price on October 1.

According to the data monitoring of SunSirs, the domestic price of PP melt blown material was 9,016.67 RMB/ ton on October 30, and the average price was 9,050 RMB/ ton on November 7. The weekly increase and decrease range was +0.37%, which was -0.55% higher than the price on October 1.

Last week, the news of the Federal Reserve's interest rate increase was solid, and the negative mentality brought by the global high inflation macroeconomic continued to affect the market. In addition, domestic health events rebounded in the week, and the risk area increased to about 4700, which affected the shipping and receiving of some enterprises. At the same time, the typhoon weather in South China at the weekend affected the port suitcase business, and multiple pressures led to greater resistance to the rise of the PP spot market.

In terms of raw materials: after the fall of crude oil in early November, there was a lot of news about the expected tightening of supply. The price rebounded in the second half of the week, and the cost side of oil to polypropylene supported the recovery. Propane was boosted by the higher external market price, while methanol price was firm, and the support for PDH and FMTP was strong and even. In general, the support of polypropylene raw material end is acceptable.

In terms of supply: Last week, the total domestic PP output declined steadily, with a total of about 600,000 tons of PP produced in the week. Compared with last week, the capacity loss increased by more than 3,000 tons. Due to the pressure of on-site shipment, the enterprise load is cautious and stable, and some enterprises reduce the load or conduct maintenance. The supply of goods decreased during the week, and the pressure on spot prices from suppliers decreased by a narrow margin.

Demand: last week, PP operated in a narrow range of shocks, falling first and then rising in the week. The spot shipment is affected by typhoon weather, health events and other aspects. The market delivery is smooth, and the terminal factory needs to follow up on the whole, which is slightly lagging behind. The main force of wire drawing materials downstream plastic knitting and BOPP order preparation enthusiasm is not high, and the inventory level runs horizontally.

The price of non-woven fabrics downstream of fiber material and melt blown PP is flat, the digestion speed of terminal products is stable, the profit of the enterprise is average, and the price is bottomed by cost and demand. At present, the situation of international health events in various countries is still not optimistic, and the epidemic situation in China and neighboring countries has rebounded recently. However, it has limited pulling effect on medical melt blown cloth materials. The domestic and foreign demand has not significantly helped, and the support for spot prices is poor. There is abundant supply of melt blown materials in the market, and the saturation of domestic melt blown materials and cloth enterprises is high. The market competition is strong.

Last week, with some funds leaving the market, the short-term profit margin of PP market was exhausted, and the market returned to the fundamental market of supply and demand game. The industry load decreased by a narrow margin, and the inventory decreased. The terminal just needs goods, but the follow-up order is slightly insufficient. Although petrochemical plants are willing to raise prices, the confidence of manufacturers and traders is not strong, and the market is generally empty due to macroeconomic impact. At present, the core guidance is still the far upstream international oil price. It is expected that China PP price will fluctuate in a narrow range in the short term, focusing on consolidation and operation.

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