According to the data monitored by the business community, the PP market in April fell on the whole, and the spot prices of various brands decreased to a certain extent. As of April 30, the mainstream offer price of T30S (wire drawing) of domestic manufacturers and traders was about 8683.33 yuan / ton, a decrease of 3.34% compared with the average price at the beginning of the month, and a rise of 14.76% compared with the same period last year.

Cause analysis

PP upstream propylene domestic market continued to rise in the first ten days of April, and the price dropped sharply in the last ten days. The overall increase was 1.28%, with a monthly high of 8.49% at 8619 yuan / ton on April 24. In the second half of March, the price of propylene dropped sharply. In early April, the market continued to pick up and the price rose slowly. In the latter half of the year, the domestic market was significantly affected by the decline of propylene in the external market. At present, there is no pressure in propylene market, and some units are still under maintenance. The supply of goods in Shandong is a little tight. Downstream operating rate is fair, the market is more than empty.

April PP raw material propylene market trend amplitude is wide, PP cost side support fluctuation operation. The recent PP market to undertake the industry high load environment, the first quarter of this year, the domestic polypropylene plant overall average operating rate of 93%, located in the historical high area. The competition in the industry is strengthened, and the profit of some PP polymerization enterprises is inverted. In addition, in recent years, China is still in the stage of rapid expansion of polypropylene production capacity. Before the domestic production line was put into production, there was a certain degree of contradiction between supply and demand in PP market in April. The increase of overseas orders had less impact on the market than expected. The high price of goods depressed the purchasing enthusiasm of downstream users. In the latter half of the year, the business operation gradually turned to let the profit go. Business analysts believe that the increase in trading resistance is one of the main reasons for the decline in April.

In terms of fiber materials, according to the data monitored by the business society, as of April 30, the mainstream offer of domestic producers and traders Z30S (fiber) was similar to that of wire drawing materials, with a price of about 8816.67 yuan / ton, a decrease of 4.34% compared with the average price at the beginning of the month, and a rise of 3.73% compared with the same period last year. In April, the fiber PP production scheduling decreased compared with the previous period, and the proportion of recent production scheduling continued to fluctuate. At present, the demand of fiber PP is stable, which is not the same as that of the same period last year. The direct downstream spunbonded non-woven industry competition is strengthened, and the reduction of the profit of the production traders makes the decrease of the fiber material spot is larger than that of the drawing material.

Melt blown materials, melt blown PP market in April down, spot price has been stable in the level of 10000 yuan. As of April 30, the average quotation of pph-y1500 sample enterprises monitored by business society was about 10800 yuan / ton. At present, the domestic epidemic situation is generally stable, the new situation in some areas has no obvious pulling effect on the demand for medical protective equipment, and the saturation situation of domestic epidemic prevention materials is relatively stable. The overseas epidemic situation is still the same, especially the epidemic situation in some Asian Pacific countries is gradually deepening in the near future, which may increase the pressure of epidemic prevention work in neighboring countries and regions in the future. But on the whole, the domestic melt blown fabric manufacturing market has high saturation, strong competition and scattered profits. It is expected that the melt blown PP market will continue to be stable.

Future forecast

PP analysts of business news agency think: in April, domestic PP demand performance was poor, downstream factory profit space was compressed, the bearish attitude in the market was heavy, and the spot market trend fell. At the end of the month, social inventory was low, indicating that supply side pressure was reduced. The upstream propylene price fluctuated in a wide range. The price recovered at the end of April and the beginning of May, and the support for PP cost side was acceptable. But about the end of May, PP production unit involves 750000 tons of production capacity. At the moment of insufficient recovery of terminal demand, the yard is likely to be affected by increased competition pressure in the near future. It is expected that in the short term, PP prices may rise due to upstream support. In the medium and long term, there may be room for decline.