According to the data monitored by the business society, the PP market trend fluctuated and weakened in December, and the spot prices of various brands fell slightly. As of December 31, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8130.00 yuan / ton, up or down – 2.52% compared with the average price at the beginning of the month.

Cause analysis

Industrial chain: in terms of upstream propylene, domestic propylene is stable and small this month. The raw material procurement of downstream factories is mainly based on rigid demand. The market wait-and-see mood is strong. The overall demand for propylene is general. In terms of supply, the on-site supply is sufficient, and the enterprise has great pressure to take goods. At present, the propylene market is in a stalemate, the forecast of future demand is general, and the propylene is expected to fluctuate downward in the short-term future.

In the upstream, the price of propylene raw material fluctuated, the recent weak operation of dynamic coal, the news was relatively negative, and the PP cost support was poor. In terms of supply, the supply of PP is basically abundant, and the operating rate of the industry is stable. At the end of the month, the inventory of two barrels of oil decreased moderately. In terms of demand, at present, the demand of terminal enterprises is relatively weak, the preparation before the festival is slow, there is no large-scale purchase follow-up, the merchant’s offer confidence is poor, and the profit on the site mainly depends on direct upstream propylene.

In terms of fiber materials, according to the data monitored by the business society, as of December 31, the spot price trend of domestic fiber PP fluctuated after falling. The mainstream offer price of Z30S (fiber) from domestic manufacturers and traders was about 8116.67 yuan / ton, with an increase or decrease of – 5.44% compared with the average price at the beginning of the month and a decrease of – 2.40% year-on-year. Recently, the demand for PP fiber materials has remained stable, the consumption of end products has been stable and small, and the profits of the main downstream non-woven enterprises have decreased slightly. The load of terminal enterprises shows a slight upward trend. The production situation of PP enterprises is mainly the completion of early orders. It is expected that the fiber material market may continue to consolidate steadily after the festival.

In terms of melt blown materials, the melt blown PP market was weak this month. As of December 31, the average quotation of domestic melt blown material sample enterprises monitored by the business society was about 9516.67 yuan / ton, up or down – 1.72% compared with the average price level 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 was generally stable in December, the dynamic coal market was empty, the cost side was stable and weak, and the upstream support for PP was OK. The demand follow-up of terminal enterprises is general, the market is long and empty, and the demand is slow. It is expected that the PP market may still be weak in the short term.