According to the data monitored by the business agency, the trend of domestic PP market in June was narrow and strong, with different brands of materials up and down. As of June 30, the mainstream offer price of T30S (wire drawing) of domestic manufacturers and traders was about 7850.00 yuan / ton, which was 2.61% higher than the average price at the beginning of the month.

Cause analysis

In terms of propylene upstream of polypropylene, according to the data from the bulk list of business associations, the domestic propylene (Shandong) market price experienced two and a half rounds of ups and downs in June, with 6643 yuan / ton at the beginning of the month, 6845 yuan / ton at the end of the month, with a monthly increase of 3.04%; the monthly high price appeared on June 4, at 6906 yuan / ton, and the monthly low price appeared on June 13, 6498 yuan / ton, with a monthly amplitude of 5.91%. At present, the market turnover is between 6750 and 7050 yuan / ton, and the mainstream price is about 6850 yuan / ton. At present, the pressure of propylene manufacturers to ship is small, there are many sets of devices to transmit maintenance information. Generally speaking, although the international crude oil market price has been slightly lowered recently, the future market is still ideal, which has a certain positive effect on propylene. Downstream prices have been up and down, but the operating rate is ideal, trading is more active, and manufacturers’ inventory pressure is small. Therefore, it is expected that the propylene price may still rise in recent days.

 
Upstream propylene trend in June strong shock, PP (drawing) market in this month is relatively mild, but the market direction is still strong performance. According to the data monitored by the business agency, the lowest point in June appeared at 7650.00 yuan / ton at the beginning of the month, and the highest point appeared at 7850.00 yuan / ton on June 18. The monthly increase and amplitude were both 2.61%. The index showed that the domestic spot price of PP (wire drawing) fluctuated upward. On the supply side, there are still a number of devices have not been restarted, powder operating rate has also dropped. On the macro level, the overall market is helped by the demand, but at present, the downstream stock preparation tends to slow down, and the speed of market stock reduction is affected. On site petrochemical plant supports the quotation. In addition, the overall production of cracking units in Asia increased significantly this month, which is expected to suppress the price of propylene.

According to the data monitored by the business agency, as of June 30, the mainstream offer price of domestic manufacturers and traders Z30S (fiber) was about 7816.67 yuan / ton. 89% higher than the average price at the beginning of the month. At present, the domestic PP (fiber) price market is in line with PP (drawing) pace, the lowest point is 7750 yuan / ton at the beginning of the month, and fluctuates after rising. After the over production of PP fiber material caused by speculation in April and the rapid cooling of market atmosphere in May, it can be said that the hidden inventory caused by overproduction has been digested in this month. The “debt repayment” market of PP (fiber) material with “revenge” type has become the past. The market in June objectively reflects the law of supply and demand prices. However, at the end of the month, following the performance of PP (drawing) market, some merchants had poor shipment and insufficient follow-up of downstream stock purchase. At present, the market lacks the guidance of new good news, and the disk stalls.

The market of PP melt blown material is not satisfactory. At present, the price of domestic PP (melt blown) material has dropped greatly. According to the price of business agency, as of June 30, the average quoted price of melt blown PP for melt index 1500 was 19333.33 yuan / ton. Compared with the previous two months, the stock of meltblown materials “fell to the altar” in June, falling below 20000 yuan per ton. There are signs of rebound in recent public health events in China, and the international side has continued to deepen development. The increase in demand has not brought sufficient benefits to the domestic market. A large number of enterprises began to pour into the production line of meltblown fabrics and materials after 1997, but now it is difficult to produce N95 grade materials. The stock in the market is not small. Some substandard products can only be sold at low prices or converted to diapers and other products. In the early stage of the industry boom, the products lacked standards and profiteering, and the export regulations of high quality shielded some small and medium-sized enterprises with general technical ability, which showed that the health of the industry was worrying. The craziness of the industry has attracted the attention of the government, and the production of meltblown cloth in many places across the country is facing rectification. Domestic public health events are generally stable, and the demand for epidemic prevention materials is falling rapidly, which leads to the periodic oversupply. For example, most of the prices of epidemic prevention related products have fallen recently. Isopropanol, as one of the raw materials of disinfectant, has dropped in the last ten days of this month, reflecting the dispersion of demand for epidemic prevention materials. The explosive increase of participants in the production of PP meltblown materials has led to the uneven quality of PP meltblown materials and the “diving” in price.

Future forecast

Business agency PP analysts believe: June domestic PP spot market is stronger finishing. Upstream propylene market high consolidation, strong support for PP. PP (drawing) is mainly operated with high price, and PP (fiber) is also strong and strong finishing. PP (melt blown) demand weakened, prices fell sharply. At present, the reduction of the petrochemical plant’s stock is slowing down, and the petrochemical plant’s offer is intended to support the price. PP was generally helped by the recovery of demand, and the tight supply situation improved at the end of the month. The operating rate of downstream factories is average, and the stock order can be purchased as soon as it is used, which conflicts with high price goods. Business mentality temporarily stable, actual trading general. PP market is expected to weaken, it is suggested to pay attention to the further trend of supply and demand.