According to the data monitored by the business community, the PP market rose first and then fell in May, and the spot prices of various brands decreased overall at the end of the month. As of May 31, the mainstream offer price of T30S (wire drawing) of domestic manufacturers and traders was about 8516.67 yuan / ton, with a decrease of 1.92% compared with the average price at the beginning of the month and an increase of 11.33% compared with the same period last year.

Cause analysis

PP upstream propylene in May domestic (Shandong) market prices continued to rise after the shock down. At the beginning of the month, the price was 8055 yuan / ton, and at the end of the month, the price was 7781 yuan / ton, with a monthly decrease of 3.40%. At present, the domestic inventory is still small, some units are overhauled, enterprises suspend quotation, the crude oil market rises slightly, the downstream operation rate is general, some units return to work slightly, the favorable market is mostly concentrated in the first ten days, and the market in the last ten days is empty, so it is expected that propylene may continue to fall slightly.

Upstream propylene market fell, PP cost side support weakened. In the first half of May, due to the rise of international energy sources such as crude oil and steam coal, it was good for global commodities. In addition, the centralized maintenance of production units in the domestic polypropylene industry weakens the supply, resulting in the strong PP market in the first half of the month. In the second half of May, the average operating rate of PP industry began to pick up, and it was in the off-season of traditional demand, and the consumption of terminal enterprises declined. At the same time, the recent new production line production involves more production capacity, although it is currently in the trial stage, but the news hit market confidence. On the whole, the total production volume is relatively large this year, and the supply pressure on the site will gradually increase. The resistance of the lower reaches to high price goods is gradually increasing, and the trading momentum is insufficient. At the end of May, the negative effect is superimposed, and the current drawing material market is still short.

In terms of fiber materials, according to the data monitored by the business society, as of May 31, the mainstream offer of domestic producers and traders Z30S (fiber) was similar to that of wire drawing materials, with a price of about 8666.67 yuan / ton, a decrease of 1.70% compared with the average price at the beginning of the month, and an increase of 11.83% compared with the same period last year. In the first half of May, fiber materials rose with energy and propylene. In the second half of May, the market trend of fiber materials was similar to that of wire drawing materials. At present, the demand for fiber PP is not strong, and the direct downstream non-woven enterprises are short of orders, and the consumption of diapers and other products has also entered the off-season. The competition of spunbonded nonwovens and Spunlaced Nonwovens in the downstream of the industry intensifies, which has a negative impact on fiber PP.

Melt blown materials, melt blown PP market last week, small weak, spot prices remain at the level of 10000 yuan shocks. As of May 31, the average quotation of pph-y1500 sample enterprises monitored by the business community was about 10633.33 yuan / ton, and the price of imported materials rose, generally more than 12000 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. At present, the overseas market has a large demand for oxygen generator and other related equipment, which has little effect on the melt blown PP industry. The domestic melt blown fabric manufacturing market is highly saturated. It is reported that there are still many production lines that have stopped production or changed production recently. Melt blown PP market is expected to continue to narrow adjustment.

Future forecast

Business community PP analysts believe: May domestic polypropylene market long short changes, the overall decline. Propylene price at the cost side fell, while PP cost side support weakened. Polypropylene has entered the traditional off-season demand, and its consumption is low. The end users have strong resistance to the high price of goods, the goods preparation is rigid, and they need to operate carefully. Multiple factors restrict the actual trading. In addition, the rapid growth of PP production capacity, which is the gradual release of long-term supply side bad news, is expected that the recent PP price will remain weak.