According to the data monitored by the business society, the PP market trend fluctuated and fell in early December, and the spot prices of various brands decreased. As of December 10, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8090.00 yuan / ton, up or down – 3.00% compared with the average price at the beginning of the month.
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Cause analysis
Industrial chain: Recently, the propylene price in Shandong stabilized after falling, and the upstream oil price was repaired after falling sharply, providing support for propylene. However, the downstream demand is weak, coupled with sufficient supply in the propylene market, it is expected that the propylene short-term market will maintain a volatile downward trend.
Upstream, the price of propylene and other raw materials is weak, and the collapse of PP cost support in the early stage has not been improved. In addition, the supply of PP remains abundant, the operating rate of the industry is stable, and the storage of two barrels of oil depot is stable. The operating rate of the industry and its downstream is still average, the purchase follow-up of end users is not timely, and the merchant’s offer confidence is poor. Some polymerization plants consider reducing the burden and reducing the pressure.
In terms of fiber materials, according to the data monitored by the business society, as of December 10, the spot price trend of domestic fiber PP stabilized after falling. The mainstream offer price of Z30S (fiber) from domestic manufacturers and traders was about 8216.67 yuan / ton, up or down – 4.27% compared with the average price at the beginning of the month, with a year-on-year decrease of – 6.81%. Recently, the demand for PP fiber materials has been stable. Due to the falling cost, the operating rate of the main downstream non-woven enterprises has increased slightly, and the consumption of end products is flat compared with last week, giving general support to fiber materials.
In terms of melt blown materials, the recent melt blown PP market is weak. As of December 10, the average quotation of domestic melt blown material sample enterprises monitored by the business community is about 9650 yuan / ton, up or down – 0.34% compared with the average price level at the beginning of the month. During the period of high incidence of recent rebound in health events in various countries, the number of local diagnoses in some areas of China has increased. However, the supply of meltblown materials in the field is sufficient, and dilution has a pulling effect on the spot market of meltblown cloth. In addition, the weakening of cost side support smoothes the bullish market, and the market lacks guidance for horizontal operation.
Future forecast
PP analysts of business society believe that the domestic polypropylene market continued to be weak in early December, the cost side is still weak, and the upstream support for PP is poor. The demand of terminal enterprises is not followed up enough, and it is expected that the PP market may still fall in a narrow range in the short term.
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