According to the data monitored by the business community, the PP market in early June was volatile and the spot prices of various brands were reduced. As of June 10, the mainstream offer price of T30S (wire drawing) by domestic manufacturers and traders was around 8300.00 yuan / ton, a decrease of 4.41% compared with the average price at the beginning of the month, and a rise of 6.87% compared with the same period last year.

Cause analysis

The domestic (Shandong) market price of PP upstream propylene stopped falling and rising in early June, with the price of 7781 yuan / ton at the beginning of the month, and the average price of 10 days was about 7945.82 yuan / ton, up 2.99%; June 1 is the first ten days of low price. Recently, the prices of propylene in the United States and Asia are stable, which has no significant impact on the propylene market. Propylene market inventory is not much, part of the unit maintenance has started, began to quote. Recently, events in the international crude oil market continued, and the price rise was objective, which played a certain cost support for the price rise of propylene in the first ten days. But part of the downstream down obvious, long and short game in the field, propylene or shock is expected to rise.

The upstream propylene market is warming, and PP cost side support is strengthened. Last month, the average operating rate of the industry rebounded, coupled with the off-season of traditional demand, the consumption of terminal enterprises declined. In the first ten days of this month, the domestic market continued the previous pattern. Although power rationing affected production in some regions, the overall supply pressure did not improve. This year’s new production line production involves more production capacity, and the medium and long-term expansion of production capacity is a blow to market confidence. In addition, the recent decline of RMB exchange rate has formed a certain resistance to polypropylene export, aggravating the contradiction between domestic supply and demand. The lower reaches are still resistant to high price goods, and the momentum of off-season trading is insufficient. The market is generally short, and petrochemical plants generally reduce the ex factory price.

In terms of fiber materials, according to the data monitored by the business society, as of June 10, the mainstream offer of domestic producers and traders Z30S (fiber) was similar to that of wire drawing materials, with a price of about 8566.67 yuan / ton, a decrease of 1.15% compared with the average price at the beginning of the month, and a rise of 9.13% compared with the same period last year. At present, the consumption of fiber PP is also weak, and the two kinds of oil and social inventory are rising slightly. The direct downstream non-woven enterprises tend to operate passively, and the consumption of diaper products is insufficient. Spunbonded non-woven industry and Spunlaced non-woven industry profits under pressure, the site fiber PP by multiple bad effects, continued the previous weak trend.

Meltblown materials, the recent meltblown PP market fell, spot prices generally down. As of June 10, the average quotation of pph-y1500 sample enterprises monitored by the business community was about 10400 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, the recent epidemic problems in China’s neighboring countries in the Asia Pacific region are profound, which may increase the epidemic prevention pressure of neighboring countries in the future. However, the demand of overseas epidemic prevention market tends to increase the quantity of oxygen generator and other related equipment, and there is no pulling effect on melt blown PP industry. The saturation of domestic melt blown fabric manufacturing market is high, and several production lines have been confirmed to stop production recently. Melt blown PP market is expected to continue to narrow adjustment.

Future forecast

Business community PP analysts believe that: in early June, the domestic polypropylene market fluctuated and fell. The current market is still in the traditional off-season demand, low consumption. The end users have strong resistance to the high price of goods, the goods preparation is rigid, and they need to operate carefully, and the actual trading volume is small. In the year of rapid growth of PP production capacity, the medium and long-term supply side bad news is gradually released, and multiple factors amplify the contradiction between supply and demand in the industry. Crude oil and propylene in the upstream of the industrial chain are stronger and better expected. The current market support mainly comes from the upstream. It is expected that PP price will remain weak in the near future.