According to the data monitored by the business community, in December, the PP market rose and fell with each other, the wire drawing brand ran in shock, and the fiber products rose. As of December 31, the mainstream offer price of domestic manufacturers and traders T30S (wire drawing) was about 7858.33 yuan/ton, up or down by – 0.32% compared with the average price at the beginning of the month.

Cause analysis

Industrial chain. Subsequently, due to the rising cost, the downstream product profit was tightened, and the commencement was reduced, so the procurement was restrained. In order to stabilize the delivery of propylene, the prices of propylene enterprises decreased successively. In the middle of the month, the price of propylene fell to a low level, and the downstream bought on bargain. The supply of low price goods was smooth, and the price rose a small peak. In the late ten days, due to the impact of domestic public security incidents, transportation and manpower were affected. The offer of propylene continued to decline, with a fall of 5.8% for the whole month, 4.03% YoY.

Propylene prices rose and then fell, and PP cost side support was first strong and then weak this month. In terms of industry load, the maintenance and resumption of work of PP polymerization enterprises coexisted in December, and the industry load increased overall, adjusting operation at about 80%. The supply of goods on the site is sufficient, and the inventory position drops within the month. In terms of demand, the market of the products started by downstream plastic knitting enterprises is average, and the stock volume of BOPP enterprises has limited change, while it has declined year-on-year. In December, the wire drawing materials ran in shock, and the end of the month was weak. The power for the rise in the middle of the month was driven by the blowout demand for wire drawing materials.

In terms of fiber materials, according to the data monitored by the business community, as of December 31, the spot price of domestic fiber PP was generally flat. The mainstream offer price of domestic producers and traders Z30S (fiber) is about 8133.33 yuan/ton, up or down 1.67% compared with the average price at the beginning of the month, and+0.21% year-on-year. In this month, the load of downstream non-woven enterprises, the main source of PP fiber, increased, the profit of spunbonded non-woven fabrics was fair, and the demand of terminal enterprises increased significantly. The digestion speed of nonwoven end products has increased, and the enterprise’s replenishment operation of fiber PP is moderate. The kinetic energy on the site will remain firm, and it may still maintain consolidation and operation in the short term.

In terms of meltblown materials, the market of meltblown PP rose significantly in December. As of December 31, the average quotation of domestic meltblown material sample enterprises monitored by the business community was about 11133.33 yuan/ton, which was+23.70% higher than the average price at the beginning of the month, and+16.99% higher than the same period last year. In terms of international health events, the current optimization of China’s health event disposal has led to a large demand for masks. Social consumption has played a significant role in pulling medical melt blown fabric materials, but the trend has weakened at the end of the month. The domestic and foreign demand has not significantly helped. At present, the supply of melt blown materials in the market is abundant for a long time, and domestic melt blown materials and cloth enterprises have high starting saturation, but the inventory has not accumulated. Therefore, the price of melt blown materials may be stable when the demand momentum slows down.

Future market forecast

PP analysts from the business agency believed that the good performance of polypropylene market in December was mainly due to the high demand for meltblown materials. The raw material propylene market rose first and then fell, and the cost side support weakened. The terminal enterprises just need to maintain their strength, and the trading in the market is OK, but the buyers are cautious in their operations. It is expected that the PP market will continue to operate firmly in the short term.