September 6, 2023
According to the Commodity Market Analysis System of SunSirs, the PP market rose in August, with various wire drawing brands fluctuating and rising. As of August 31st, the mainstream quoted price of T30S (wire drawing) by domestic producers and traders is around 7,685.71 RMB/ton, with a +3.16% increase or decrease compared to the average price level at the beginning of the month.
Industry chain: Upstream, PP raw materials in August, and propylene in Shandong have increased driven by crude oil costs. The increase in maintenance of PDH devices and the decrease in on-site supply have boosted market information, while also affecting the upward trend of propylene prices. At the end of the month, supply tightened and prices once again showed a broad upward trend. Overall, polypropylene has strong cost support.
The trend of raw materials in all directions is acceptable, and there is support for PP on the cost side. In terms of industry load, the overall industry load was around 79% at the end of August, with a lower position compared to the previous period of volatility. The overall supply of goods was stable, and the on-site supply of goods was sufficient. The changes in demand are not significant compared to the previous period, with downstream plastic weaving operations remaining flat at over 40%, and the operating rate of film and injection molding enterprises maintaining around 60%. The overall position is still good, and the stocking situation of terminal enterprises is orderly. The market performance is balanced, and it is expected that some enterprises may experience seasonal recovery in purchasing and restocking.
In terms of fiber materials, according to the Commodity Market Analysis System of SunSirs, as of August 31, the spot price of domestic fiber PP has increased. The mainstream quoted price of domestic producers and traders for Z30S (fiber) is around 7,650 RMB/ton, with an increase or decrease of +2.68% compared to the average price at the beginning of the month, and a decrease of -4.42% compared to the same period last year. During the month, the downstream non-woven fabric enterprises, the main force of PP fiber materials, maintained a low horizontal load, with an overall operating rate of around 32%. The demand for fiber materials in the market remains low, the digestion speed of non-woven end products is average, and the enterprise's replenishment operation for fiber PP is average. It is expected that in the short term, fiber materials may maintain cost support and tend to strengthen the consolidation operation.
In terms of melt blown materials, this week's melt blown PP market fluctuated. As of August 31st, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of SunSirs is around 8,100 RMB/ton, which is 0% higher than the average price level at the beginning of the month and 11.64% lower than the same period last year. At present, the domestic and international news of the health incident has basically subsided, and the consumption of medical meltblown fabric materials is weak. There is also no significant boost in domestic and foreign demand. The main support for the market is the cost side, and it is expected that the melt blown material market may maintain a volatile consolidation market.
PP analysts from SunSirs believe that the polypropylene market rose in August. The overall trend of upstream raw materials is strong, and the support from the cost side for the market is still acceptable. The construction of terminal enterprises continues to maintain the previous level, and the demand for goods is relatively high. It is expected that the PP market will enter the peak season and strengthen in the short term.
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