According to the data monitored by the business society, the PP market trend was strong in early January, and the spot prices of various brands rose slightly. As of January 7, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8260.00 yuan / ton, with an increase or decrease of + 1.60% compared with the average price at the beginning of the month.

Cause analysis

Industrial chain: in terms of upstream propylene, the price of propylene (Shandong) increased significantly this week, and the manufacturer’s offer continued to rise. As of Friday, the propylene price in Shandong market was 7800-7850 yuan / ton, up 300 yuan / ton from last weekend. The production of the enterprise is stable, the inventory is in the middle, and the delivery of goods remains stable. The price of propylene raw material rose strongly, the offer of propylene pushed up, and the downstream acceptance was acceptable.

In the upstream, propylene raw material prices have risen, dynamic coal has been operating at a low level recently, international crude oil prices have risen, and PP cost support has strengthened as a whole. In terms of supply, the supply of PP was abundant this week, and the operating rate of the industry was stable. At the end of last month, the extent of two barrels of oil going to the warehouse was acceptable. In terms of demand, at present, terminal enterprises have the demand for goods preparation before the festival, and the on-site trading has warmed up, but there is still great resistance to the delivery of goods from high price sources. The low-end offer of merchants has been raised, and the high-price offer is still not smooth.

In terms of fiber materials, according to the data monitored by the business society, as of January 7, the spot price trend of domestic fiber PP has increased. The mainstream offer price of Z30S (fiber) from domestic manufacturers and traders is about 8266.67 yuan / ton. Compared with the average price at the beginning of the month, the rise and fall range is + 1.85%, and the rise and fall range over the same period last year is – 0.20%. Recently, there is also a demand for pre Festival stock of PP fiber materials. The consumption of end products is large, stable and small. The operating rate of the main downstream non-woven enterprises is maintained at more than 50%. The production of PP enterprises is about to enter the holiday schedule, and the demand will gradually decline in the later stage. It is expected that the recent fiber material market may continue to rise steadily due to the benefit of cost side.

In terms of melt blown materials, the melt blown PP market operated weakly and stably this week. As of January 7, the average quotation of domestic melt blown material sample enterprises monitored by business society was about 9516.67 yuan / ton, up or down 0% compared with the average price at the beginning of the month. During the period of high incidence of recent rebound in health events in various countries, the number of local diagnoses in some areas of China has 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 saturation pattern of domestic melt blown materials and cloth enterprises remains unchanged. It is heard that there is still capacity transfer out this month and other brands of PP. the industry competition is strong and the spot price is difficult to rise.

Future forecast

PP analysts of business society believe that the domestic polypropylene market rose in early January, the dynamic coal market fluctuated, the crude oil rose, and the cost side generally boosted the spot price of PP. Terminal enterprises are in the pre holiday stock demand, and the on-site trading is OK, but the stock preparation process is about to enter the second half. It is expected that the PP market may still have a limited increase in the short term.