September 8, 2022
According to the data monitored by SunSirs, the PP market rose in a narrow range in early September, and the spot price of each drawing brand rose more or fell less. As of September 5, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8,083.33 RMB/ ton, up or down by +0.83% compared with the average price at the beginning of last week.
Industrial chain: on the upstream side, the propylene market was collated horizontally this week. Last month, the focus of spot prices continued to move downward, and the staged rebound was insufficient. The current supply pressure is OK, but the on-site demand is generally supported, and there is no centralized stock preparation operation. For the next traditional peak season, there will be limited improvement in the mentality of operators. It is expected that propylene's rising resistance will remain, and the market may continue to sort out and operate.
The propylene price was flat on the whole, and the PP cost side was generally supported last week. In terms of industry load, the operating rate of PP polymerization enterprises has changed a little recently, and the proportion of wire drawing materials is not high. Last week, the inventory fell by a narrow margin, and the supply pressure was OK. Downstream demand has increased slightly, and power and production restrictions of some terminal factories have ended, but most of the goods are scattered small orders. Traders' mentality is general, and the offer follows the market. It is expected that the spot market of PP wire drawing materials will be strong in the short term.
In terms of fiber materials, according to the data monitored by the business agency, as of September 5, the spot price of domestic fiber PP was weak. The mainstream offer price of Z30S (fiber) from domestic manufacturers and traders is about 8,050 RMB/ ton, up or down by +0.84% compared with the average price at the beginning of last week, with a year-on-year decline of -5.11%. This week, the load of the main downstream non-woven fabric enterprises of PP fiber materials was stable as a whole, and the demand and operation of end enterprises were limited. The digestion speed of downstream products such as non-woven fabrics is general, enterprises reduce prices and ship goods, and the replenishment of fiber PP is biased towards bulk orders. Due to the lack of confidence of the market in the macro economic pattern and the heavy wait-and-see mood in the industrial chain, it is expected that the fiber market will have a limited increase in the short term.
In terms of meltblown materials, this week's meltblown PP market was collated horizontally. As of September 5, the average quotation of domestic meltblown material sample enterprises monitored by the business agency was about 9,166.67 RMB/ ton, which was the same as the average price at the beginning of last week, with a year-on-year decrease of -0.36%. In terms of international health events, the current situation in various countries is still not optimistic, and the recent explosive development in neighboring Japan. There is a rebound in some regions of China, but the overall epidemic prevention pressure is not strong. Medical meltblown cloth materials are in the off-season of consumption, and there is no obvious boost in domestic and foreign demand, which does not support the spot price well. The stock of meltblown materials in the market is sufficient, 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 the polypropylene market rose narrowly last week, the raw material propylene market was sideways, and the cost side of PP was generally supported. The demand of end-users is slowly recovering, and the offers of merchants follow the market. From the survey results and market reaction, the industry is not confident about whether the demand in the traditional peak season is on schedule and sufficient due to the impact of the economic environment. It is expected that the PP market will rise or be hindered in China in the short term.
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