According to the data monitored by the business society, the PP market trend mainly fell in November, and the spot prices of various brands decreased. As of November 29, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8340.00 yuan / ton, up or down – 3.58% compared with the average price at the beginning of the month.

Cause analysis

Industrial chain: in terms of raw propylene, the overall propylene market in November was dominated by bad market. Enterprises mainly complete the orders of old customers, lack of gas in the downstream, lack of new orders, and just need. The price of upstream raw materials declined as a whole, and the spot price continued to decline under the constraints of cost and demand.

In the upstream, the price of direct raw material propylene fell, the power coal and crude oil were weak in November, and the PP cost side support collapsed. At present, PP supply remains stable, and the on-site maintenance production line is reduced. The impact of local environmental protection policies on the market is still, and the operating rate of the industry and its downstream is still average. Although the purchase follow-up of end users was not timely, the automobile and other industries just needed to be stable, raised a certain amount of demand, reduced the supply of low-cost goods in the field, and stabilized after the merchant reported the decline. At present, there is a bottoming force in PP spot price, and the quoted prices of enterprises and traders stopped falling and stabilized at the end of the month.

In terms of fiber materials, according to the data monitored by the business society, as of November 29, the spot price trend of domestic fiber PP was weak. The mainstream offer price of Z30S (fiber) from domestic manufacturers and traders was about 8583.33 yuan / ton, up or down – 4.10% compared with the average price at the beginning of the month, with a year-on-year decrease of – 5.33%. In November, the demand for PP fiber materials showed a trend of gradual improvement, and the consumption of main downstream non-woven fabrics and their end products gradually increased. Although the price decline of upstream propylene was bad for the PP market, the profits of non-woven fabric enterprises improved due to the decline of costs.

In terms of melt blown materials, the melt blown PP market was stable and weak in November. As of November 29, the average quotation of domestic melt blown material sample enterprises monitored by the business society was about 9683.33 yuan / ton, up or down – 2.35% compared with the average price level at the beginning of the month. In the fourth quarter, during the period of high incidence of rebound of health events in countries in the northern hemisphere, the number of local diagnoses in some areas of China increased. However, the supply of meltblown materials in the field is sufficient, and dilution has a pulling effect on the spot market of meltblown cloth. The main reason for the decline of melt blown materials this month is the weakness of the cost side.

Future forecast

PP analysts of business society believe that the domestic polypropylene market fell in November, propylene and coal continued to weaken on the cost side, and the upstream support for PP weakened. Spot prices fell, the demand of end enterprises was gradually released, some downstream users just needed to be stable, and PP gradually stopped falling due to its bottom building effect. It is expected that the PP market may stabilize in the short term