August 22, 2022
According to the data monitored by SunSirs, the PP market was consolidated and operated last week, and the spot price of wire drawing brand was adjusted in a narrow range. As of August 15, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8,141.67 RMB/ ton, up or down by -1.21% compared with the average price at the beginning of the month.
Industrial chain: on the upstream side, the supply and demand of propylene market increased last week, and the enterprise increased the price in line with the trend. However, due to the high inventory in the front market, considering the delivery speed and the downstream acceptance, the price increase was cautious and difficult. The actual overall market supply and demand pressure still exists, and the price trend is still weak, maintaining the trend of large decline and small rise. It is expected that the propylene market will be weak and volatile in the near future.
Propylene prices rose slightly, the international chemical industry chain continued to fluctuate under the influence of many macro inflation, and the cost side of PP was generally supported recently. In terms of industrial load, the operating rate of PP polymerization enterprises was stable last week. In the early stage, the enterprises independently reduced the load and maintained. At present, the industrial load is not high, and the supply pressure of some parts is diverted, and the effect of digesting inventory is gradually shown. The improvement of downstream demand is limited, and the inventory position decreases slightly. The purchase and follow-up of the downstream factories of wire drawing materials tend to be just needed to maintain production. In terms of operation, they buy at a low price and digest the low-end goods. The trader's attitude is correct and the offer is stable. However, the operating rate pattern of the terminal enterprises in the off-season level has not changed. It is expected that the spot market of PP wire drawing materials will continue to be weak in the short term.
In terms of fiber materials, according to the data monitored by the business agency, as of August 15, the spot price of domestic fiber PP was in a narrow range. The mainstream offer price of Z30S (fiber) from domestic manufacturers and traders is about 8,166.67 RMB/ ton, up or down by -0.81% compared with the average price at the beginning of the month, with a year-on-year decrease of -4.30%. Last week, the load of downstream non-woven fabric enterprises, the main force of PP fiber materials, was maintained as a whole, and the demand and operation of end-users continued the off-season mode of large-scale enterprises maintaining production and small and medium-sized enterprises reducing the load. The digestion speed of the product is general, and the replenishment operation is biased towards zero delivery of bulk orders. However, the capacity loss of wire drawing materials is high, the supply side is weak, and the spot price is generally stable. It is expected that the fiber market will continue to consolidate in the short term.
In terms of meltblown materials, the market of meltblown PP fell last week. As of August 15, the average quotation of domestic meltblown material sample enterprises monitored by the business agency was about 9,310 RMB/ ton, up or down by -1.13% compared with the average price level at the beginning of the month, and down by -2.68% compared with the same period last year. In terms of international health events, the current situation in various countries is still not optimistic. Recently, there has been a rebound in some areas of China, but the overall epidemic prevention pressure is not high. Medical meltblown cloth materials are in the off-season of consumption, the demand is reduced, and the support for spot prices is not obvious. There is sufficient inventory of meltblown materials in the market, and the saturation of domestic meltblown materials and cloth enterprises is high. It is expected that the recent market of meltblown PP will still be dominated by weak operation.
SunSirs PP analysts believe that: last week, the polypropylene market was adjusted and operated in a narrow range, the raw material propylene market rose slightly, and the cost side of PP was generally supported. The demand of terminal enterprises is weak, the mentality of merchants is general, and the offer follows the market. It is expected that the recent PP market in China will continue to operate smoothly.
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