According to the data monitored by the business community, the PP market fell in the third week of May, and the spot prices of various brands generally decreased. As of May 24, the mainstream offer price of T30S (wire drawing) of domestic manufacturers and traders was about 8516.67 yuan / ton, a decrease of 1.92% compared with the average price at the beginning of the month, and an increase of 11.82% compared with the same period last year.

Cause analysis

PP upstream propylene domestic market trend fell in the near future. After the festival, the spot price continued to rise for several days to the high spot price range, and the crude oil chemical industry chain weakened in the early stage, which had a negative impact on the current propylene market and affected the confidence of the industry. Some of the previously overhauled units have resumed production, and the supply pressure on the site has rebounded. Fortunately, the social inventory position is not high, and the contradiction between supply and demand is not obvious. The current propylene market is lack of guidance, and it is expected that it will be stable and weak in the future.

Recent PP raw material propylene market fell, PP cost side support weakened. In the first half of the month, the domestic polypropylene market rose due to the favorable supply side brought by the centralized maintenance of production lines and environmental protection inspection in some provinces and cities. Last week, the average operating rate of the PP industry rebounded to nearly 90%, and the market was killed by the supply pressure. In addition, the recent production of the new production line involves a production capacity of about 1.4 million tons per year. Although most of the new production lines are in the test run stage of intermittent operation, the total production volume this year is relatively large, and the supply pressure on the site will gradually increase. The downstream demand is average, the resistance to high price goods is strong, and the trading momentum is insufficient. The negative effect is superimposed, and the drawing material surface is weakened obviously in the near future.

In terms of fiber materials, according to the data monitored by the business society, as of May 24, the mainstream offer of domestic producers and traders Z30S (fiber) was similar to that of wire drawing materials, with a price of about 8666.67 yuan / ton, a decrease of 1.70% compared with the average price at the beginning of the month, and a rise of 12.31% compared with the same period last year. Last week, the market trend of fiber materials was negative, similar to that of wire drawing materials. At present, the demand for fiber PP is not strong, and the direct downstream non-woven enterprises’ purchase order volume has shrunk, and the consumption of diapers and other products has also entered the off-season. In addition, the competition of spunbond non-woven industry is fierce, the profit in the fiber yard is not obvious, and the spot price has a certain downward trend.

Melt blown materials, melt blown PP market last week, small weak, spot prices remain at the level of 10000 yuan shocks. As of May 24, the average quotation of pph-y1500 sample enterprises monitored by the business community was about 10700 yuan / ton, and the price range of imported materials was about 12000 yuan / ton. At present, the domestic epidemic situation is generally stable, and the situation of saturated demand for medical protective equipment is relatively stable. In terms of overseas epidemic situation, recently, the epidemic situation of neighboring countries in the Asia Pacific region of China has gradually deepened, which may increase the epidemic prevention pressure of neighboring countries and regions in the later stage. In terms of market performance, it has obvious effect on related industries such as oxygen generator. In terms of meltblown materials, it has no obvious effect on mask market reaction. At present, the domestic melt blown fabric manufacturing market saturation is high, and it is expected that the melt blown PP market will continue to be stable.

Future forecast

Business community PP analysts believe: in the third week of May, the domestic polypropylene industry was bad and dominated the market. Propylene price at the cost side fell, while PP cost side support weakened. The demand for various types of polypropylene is not good, the downstream has strong resistance to high price supply, the preparation of goods tends to be rigid and needs careful operation, and the actual trading is weak. In addition to the current high-speed production pattern of PP market, the negative factor of increasing supply will be gradually released and expanded in the medium and long term. It is expected that the price of PP will fluctuate weakly in the near future