SunSirs: Insufficient Demand, China PP Market is Weak

According to the data monitored by SunSirs, the PP market fell in late November, and the spot prices of wire drawing brands decreased. As of November 28, the mainstream offer price of domestic manufacturers and traders T30S (wire drawing) was about 7,866.67 RMB/ ton, up or down by -0.32% compared with the average price at the beginning of the month.

Industrial chain. It is expected that in December, the demand will further weaken, and with the escalation of the national public health and security incidents, the propylene market may fluctuate downward.

The propylene price is relatively strong, and the recent PP cost side support is fair. In terms of industry load, the operating rate of PP polymerization enterprises last week exceeded 80%. There is pressure on the supply side. In terms of inventory, the storage position of two barrels of oil is about 760,000 tons, a narrow decline compared with the previous period. In terms of demand, the market of downstream products is not good, and the stock volume of plastic weaving enterprises and BOPP enterprises is gradually reduced. In addition to the negative impact of global macroeconomic prospects and imported inflation, the market mentality is empty, and businesses generally follow the trend.

In terms of fiber materials, according to the data monitored by SunSirs, as of November 28, the spot price of domestic fiber PP fell on the whole. The mainstream offer price of domestic producers and traders Z30S (fiber) is about 7,983.33 RMB/ ton, up or down by -0.62% compared with the average price at the beginning of the month, and down by -6.99% year-on-year. Last week, the load of downstream non-woven enterprises, the main force of PP fiber, stabilized, the profit of spunbonded non-woven fabrics was average, and the demand of terminal enterprises was stable. The digestion speed of nonwoven end products is average, and enterprises prefer to just take the goods for fiber PP replenishment. The site is empty, and the operation of shock adjustment may still be maintained in the short term.

In terms of meltblown materials, the meltblown PP market fell by a narrow margin last week. As of November 28, the average quotation of domestic meltblown material sample enterprises monitored by SunSirs was about 9,000 RMB/ ton, up or down by -0.18% compared with the average price at the beginning of the month, and -7.06% year-on-year. In terms of international health events, the current situation 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 meltblown materials in the market, and domestic meltblown materials and cloth enterprises generally start construction, but the saturation is high. Melt blown materials are mainly affected by the negative cost side, and it is expected that the short-term market will be dominated by narrow amplitude shocks.

SunSirs PP analysts from the business agency believed that the polypropylene market fell by a narrow margin last week, and the raw propylene market was fair. The terminal enterprise just needs to pick up the goods, and the follow-up lags behind. The buyer's operation became more cautious, and the trading in the market gradually declined. It is expected that China PP market will still be weak in the short term.

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