1、 Price trend

Skyrocketing and plummeting are just like the positive and negative sides of a product. Just in the long drought, polypropylene, which has skyrocketed across Gansu Province, fell again. According to the data monitored by the business agency, the domestic PP (brushed) market fell sharply on April 17 (Friday), and the spot price fell by thousands. As of this evening, the main offer price of T30S for domestic producers and traders is about 8033.33 yuan / ton on average, with a one-day drop of 7.66%. On the contrary, the market price of PP (fiber) is stable in all directions, and even some manufacturers raise the price of fiber products. If the sharp rise at the beginning of this week is the madness of the market, the callback of today’s wire drawing material is a signal that the market returns to rationality.

2、 Cause analysis

Polypropylene has ended its three-month decline since the 6th of this month, with a sharp rise across the line. The spot price of domestic polypropylene market has skyrocketed, and polypropylene is a rare commodity for a while. Polypropylene, as an important material of social health prevention and control materials, enjoys high brightness. At the same time, there are some small workshops that use polypropylene fiber materials to produce masks that do not meet the standards, and the investment market blindly pursues polypropylene in order to take a share of this big increase, which results in a big increase in all polypropylene materials. According to the data monitored by the business association, the highest average price of PP (drawing) in the near future is about 8700.00 yuan / ton, with the largest increase of 32.82% higher than the average price at the beginning of the month. However, with the vigorous rectification of the manufacturers of inferior masks by the relevant departments in Yangzhong and other regions of Jiangsu Province, and the popularization of polypropylene materials for masks in the industry, the polypropylene market is now gradually returning to rationality.

On the upstream side, peripheral news said that after oil producing countries such as Saudi Arabia and Russia issued production reduction agreements, crude oil did not rise but fell, with WTI and Brent both falling significantly. Industry reaction that its production reduction may be less than the global market demand recession expectation, which has a negative impact on PP direct upstream propylene. On Monday, the market may need to digest the sharp rise in the weekend. On the 13th, the price remained unchanged. On the 14th, the price of most enterprises dropped by 1000 yuan / ton, and some of them recovered to the price before the sharp rise. On the 15th, the price dropped by 500-1000 yuan / ton. On the 16th, the price continued to drop by 200 yuan / ton. Today, the price still dropped by 400 yuan / ton. Now, the market transaction is between 5900-6500 yuan / ton The mainstream price is about 5900 yuan / ton.

PP (fiber), as the secondary main force of prevention and control materials, has not been explored with PP (drawing) today. The factory price of large factories is stable temporarily, and the current demand is acceptable. This may prove that the new entrants tend to be professional and reduce the blind purchase and sale of varieties. The atmosphere of speculation in the market is getting weaker and gradually returning to the general law of supply and demand prices.

3、 Future forecast

PP analysts of the business club think: on April 17, the domestic PP (brushed) spot market market was sharply revised back and returned to rationality. The upstream propylene price also retreated to about 5900 yuan / ton, and the support for PP cost side returned to the normal supply and demand law. The return rate of downstream factories needs to be further improved. In terms of demand, the order follow-up is average. PP (fiber) has not been affected at present, and the price is temporarily stable.