According to the data monitored by the business society, the PP market was generally strong at the end of August, and the spot prices of various brands increased by a narrow margin. As of August 27, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8383.33 yuan / ton, a decrease of 1.18% compared with the average price at the beginning of the month and an increase of 5.01% year-on-year.

Cause analysis

PP upstream propylene price fluctuated strongly this week, and callback after rising within the week. The mainstream price in Shandong market was more than 7750 yuan / ton, with a weekly increase of 0.33%. In terms of international crude oil, it opened low and went high, the cost support was strengthened, and there was a certain rising market for propylene. However, the feedback on demand is general, and the purchaser generally maintains rigid demand. The industry inventory is stable and controllable, and there is an expectation of supply rise in the later stage. Propylene is expected to be weak in the future.

The upstream propylene price fluctuated and rose, and the recent PP cost side support was strong. In terms of operating rate, there has been the resumption of some production lines recently, and the overall load of the industry is 80-90%, a slight increase over last week. As the new capacity in the early stage has not been shipped in large quantities, the supply increment is not obvious. The demand for PP wire drawing materials was followed up steadily. It was heard that the digestion of finished product inventory by downstream enterprises hindered the stock preparation and replenishment operation, and the actual purchase operation was biased to just need to maintain production. The market momentum is general, there is a certain contradiction between supply and demand, the atmosphere in the floor is stalemate, and the spot price is difficult to rise.

In terms of fiber materials, according to the data monitored by the business society, as of August 27, the spot price of domestic fiber PP fell. The mainstream offer price of Z30S (fiber) from domestic manufacturers and traders was about 8450 yuan / ton, a decrease of 0.78% compared with the average price at the beginning of the month and an increase of 6.74% year-on-year. The demand is generally stable, but the demand for epidemic prevention products is declining. It is heard that the main downstream spunbonded non-woven fabrics are affected by it, and it is more difficult to ship. The demand for end consumer goods has not seen a large amount, and the businesses have completed the task by giving away the profit order at the end of the month, resulting in a weak market.

In terms of melt blown materials, the melt blown PP market fell this week, and the spot price changed from rise to fall. As of August 27, the average quotation of domestic meltblown material sample enterprises monitored by business society was about 9233.33 yuan / ton. At present, the impact of international health events is still large, and the demand for overseas epidemic prevention is high. Recently, the order volume of downstream meltblown cloth began to stabilize, the resistance to the rise of meltblown PP increased, and there was a make-up decline in the week. Due to the high market saturation of melt blown cloth products in the early stage in China, there are few devices still in production. The previous market warming has also cooled down, and the demand has dropped to a stable level. At present, the supply and demand in the market is relatively balanced, and it is expected that the price of melt blown PP may continue to fluctuate.

Future forecast

PP analysts of business agency believe that the domestic polypropylene market was generally weak and volatile at the end of August, and the spot price fell locally. The demand of terminal enterprises continues to be insufficient. Although it is about to enter the traditional peak season, there is no hoarding operation in the short term. The load of PP production enterprises is relatively stable, and the supply end is equally stable. The upstream propylene market fluctuated and rose, but the cost side support of coal to PP was poor. The merchant’s offer remains strong, and the terminal demand has not been in large quantity. It is expected that the PP price may fall into a weak consolidation market in the short term.