Recently, the international PP market fluctuated, and the spot prices of various brands fell as a whole. As of July 26, the mainstream offer price of T30S (Drawing grade) which is used from
PP woven bags making from Chinese domestic manufacturers and traders was about 8516.67 yuan / ton, a decrease of 0.97% compared with the average price at the beginning of the month and an increase of 5.58% year-on-year.
Reasons Analysis
The domestic (Shandong) market of PP upstream propylene in China last week turned its peak and continued to rise. At the beginning of the week, the market was 7673 yuan / ton, and the average price at the weekend was 7809 yuan / ton, an increase of 1.66%. After the collapse of crude oil prices, the rebound accelerated last week, followed by propylene. The downstream is purchased on demand. In general, the downstream performance of propylene is acceptable. Although propylene prices have rebounded recently, on the whole, bad crude oil is dominant. It is suggested to pay close attention to the changes in oil prices. The short-term market shock and downward trend are still the main tone. For
woven bag processing enterprises with long-term demand for PP raw materials or
PP woven fabric rolls, it is recommended to purchase a small number of times to optimize the cost.
The upstream propylene market has warmed up and the cost side support of PP has been strengthened. It is reported that the current average operating rate of the industry has further decreased. In addition, last week, China Coal Mengda, Shanghai Secco and other enterprises issued maintenance plans. While the on-site supply has decreased, the market supply is expected to decrease. In terms of terminal enterprises, the average load continues to decline, and the demand is difficult to increase. However, the news showed that China’s total domestic PP inventory decreased by more than 7% last week. It can be seen that the shipment pressure of merchants is not as large as expected, but the purchase operation of downstream enterprises is still just to follow up, and there is a certain upward resistance on the disk.
In terms of fiber materials, according to the data monitored by the business society, as of July 26, the mainstream offer price of domestic manufacturers and traders Z30S (fiber) was about 8550 yuan / ton, a decrease of 1.91% compared with the average price at the beginning of the month and an increase of 9.85% year-on-year. Recently, the proportion of domestic fiber PP output decreased, falling to about 5% last weekend. At present, the demand for fiber PP is general, the load of production lines of spunbonded non-woven fabrics and Spunlaced non-woven fabrics in main downstream factories is relatively stable, and the consumption level is general. The market is weak, the mentality of the operators is not strong, and the actual orders are more profitable.
In terms of melt blown materials, the melt blown PP market has continued to be weak and stable recently, and the spot price level has stabilized in the range of less than 10000 yuan. As of July 26, the average quotation of domestic meltblown material pph-y1500 sample enterprises monitored by business society was about 9600 yuan / ton. At present, the market saturation of domestic melt blown cloth products is high, and the Departure news of melt blown PP manufacturers is frequent. As a result, there are few devices still in production in China. At present, the domestic epidemic situation is generally stable, and the demand for medical protective articles is saturated. The overseas epidemic level is stable, the demand for oxygen generator and other equipment related products in the external epidemic prevention market increases, and the pulling effect on the melt blown PP industry is not obvious. It is difficult to meet the demand for melt blown materials, and it is expected that the price market may continue to be weak.
Future forecast
PP analysts of business society believe that the domestic polypropylene market generally remained weak and volatile last week, showing a weak consolidation trend. The load of downstream enterprises is low, and the demand is generally followed up. There is a great pressure on the delivery of high price goods in the venue, and the merchants prefer to make profit. The upstream propylene market has warmed up and the cost side support of PP has been strengthened. The confidence in the venue is insufficient, and most operators are bearish. It is expected that the PP price may continue the weak consolidation pattern in the short term. In addition, the rice, feed and other industries are depressed this year, and the use of woven bags is significantly lower than that in the same period of previous years. It is feared that the depressed demand for materials by
woven bag manufacturers will continue.
