According to the data monitored by the Business Agency, the recent market volatility of PP has been sorted out, and each wire drawing brand has fallen more or less. As of March 13, the mainstream price of T30S (wire drawing) offered by domestic producers and traders was about 7950 yuan/ton, up and down by+0.32% compared with the average price at the beginning of the month.

Cause analysis

Industrial chain: in the upstream, the price of propylene in Shandong Province has stopped falling and rebounded recently, pushing up in a narrow range. It is understood that in the early stage, the price of propylene has been continuously reduced, the price has been adjusted in place, the enterprise inventory is controllable, and the downstream bargain-hunting has led to a small increase in the market. With the support of the downstream market, it is expected that the market will be stronger in the near future.

The price of propylene rebounded after falling, and the cost side of PP gradually recovered. In terms of industry load, PP enterprises started to increase last week due to the release of new production capacity, but the overall industry load was about 78.6%, the supply was stable, the supply was sufficient, and the supply pressure increased. In terms of demand, the operating rate of enterprises in the downstream plastic knitting of the main force is limited, about 40%. The terminal enterprises have a general stock situation, and mainly purchase on demand.

In terms of fiber materials, according to the data monitored by the Business Agency, as of March 13, the spot price of domestic fiber PP fell in a narrow range. The mainstream quoted price of domestic producers and traders Z30S (fiber) is about 7866.67 yuan/ton, which is – 0.42% higher than the average price at the beginning of the month and – 16.01% lower than the same period last year. At present, the main downstream non-woven fabric enterprises of PP fiber material have a low load, and the overall load is about 30%. The demand of end enterprises is weak, the digestion speed of non-woven end products is general, and the operation of fiber PP replenishment by enterprises is poor. It is expected that the shock consolidation operation will be maintained in the short term.

In terms of melt-blown materials, the recent melt-blown PP market has dropped significantly. As of March 13, the average quotation of domestic melt-blown material sample enterprises monitored by the Business Society was about 9000 yuan/ton. Compared with the average price level at the beginning of the month, the increase and decrease was -5.59%, and the year-on-year decrease was -11.62%. At present, the social consumption of medical melt-blown cloth materials has been more and more beneficial, and has been stabilizing after the recent decline. The overseas demand has not been significantly boosted, and the traders have given up their profits, and the price is mostly around 8500 yuan/ton. It is expected that the melt-blown material market will continue to be weak.

Aftermarket forecast

PP analysts of the Business Agency believe that the recent polypropylene market has been shaken and sorted out. The price of raw material propylene rebounded after falling, and the drag of the cost side to the market gradually improved. However, the demand of terminal enterprises tends to be just needed to maintain production, and the demand release is weak. At the same time, the impact of the early landing capacity on the market is apparent in the near future. It is expected that the PP market will continue to consolidate and operate in the short term.