According to the data monitored by the business agency, the domestic PP market was positive in the fourth week of November, and the spot prices of various brands increased significantly. As of November 25, the mainstream offer price of T30S (wire drawing) of domestic manufacturers and traders was about 9033.33 yuan / ton, an increase of 10.84% compared with the average price at the beginning of the month.

Cause analysis

In terms of propylene upstream of PP, at the end of last month and the beginning of this month, the price of propylene went out of the sharp drop in October. In the second half of the month, the domestic propylene price increased significantly. According to the business agency data, the average price of propylene on November 24 was 7405.55 yuan / ton. At present, the operation rate of propylene producers is not high, and there are still many sets of production lines can not resume operation, the supply side is slightly tense. At present, the inventory of the manufacturer is controllable without pressure, and the shipment situation is relatively smooth. In terms of demand, the downstream industry has a good enthusiasm for taking goods, with higher production profits, and traders are following the trend, with strong trading volume. Overall, there are multiple favorable supports in the propylene market at present, and the propylene price is expected to continue to rise in the near future.

The current market of propylene is positive, which has certain support for the cost side of PP. The data monitored by the business agency shows that the recent price trend of PP (drawing) is better. In terms of demand, with the continuous rise of PP, the cost pressure of the plastic knitting industry compressed the profit space, and took goods to shrink. However, the overall order volume is acceptable, and the operating rate has a steady upward trend. The demand of injection molding downstream factories is large and the orders are strong. In terms of inventory, according to sources, PP producers had inventory of about 340000 tons in the third week of November, which was at the year’s low. Futures continued to rise in recent days, boosting the spot market confidence. PP is expected to continue the positive trend in the near future.

According to the data monitored by the business agency, as of November 25, the mainstream offer of Z30S (fiber) of domestic manufacturers and traders was the same as that of drawing materials, and the price was about 9033.33 yuan / ton, which was 5.45% higher than the average price at the beginning of the month. Boosted by the rise of raw material propylene and futures, the market of fiber materials also went up in recent days, and the two barrels of oil fiber brand PP all rose to a certain extent. Fushun Petrochemical Z30S rose for a week, now reported 9050 yuan / ton. Jingmen Petrochemical fiber material increased steadily, now reported 8850 yuan / ton. The situation of downstream goods taking is fair, and the news of free trade agreement is favorable. It is expected that PP (fiber) will continue to be better in the near future.

PP meltblown material market recent shock finishing market, the overall price tends to stabilize. At present, the epidemic situation in China is generally stable. Recently, a small-scale rebound has occurred in some areas, and the demand has increased slightly. Some brands of melt blown materials have increased by about 100-200 yuan / ton in the near future. The reference price of y1500 of Maoming Petrochemical is 11000 yuan / ton, and the price of N95 grade polypropylene of some private enterprises is 9500 yuan / ton. The second outbreak trend of overseas epidemic is obvious, many countries announced to close the city again, and the non-woven fabric in the application of medical protection is sought after again. However, the domestic market has not changed much, the supply side of meltblown cloth and material manufacturing market is surplus, and the profit dilution is serious. Business agencies believe that the recent melt blown PP market support, due to the strength of the cost side.

Future forecast

PP analysts believe that: the fourth week of November domestic PP spot market is more positive. The upstream propylene market is strong and the price is rising, which supports the cost side of PP. While the fundamentals are positive, futures have been pulling up day after day, boosting the spot market. PP (PP) prices up and down. Downstream factory stock procurement is stable, and the delivery is fair. PP spot is expected to continue to strengthen in the near future.