According to the Commodity Market Analysis System of the Business Society, the PP market continued to fluctuate this week, with overall reductions in various wire drawing brands. As of May 12th, the mainstream quoted price of T30S (wire drawing) by domestic producers and traders is around 7357.14 yuan/ton, with a decrease of -4.54% compared to the average price level at the beginning of the month.
Cause analysis
Industry chain: On the upstream side, the recent decline in the propylene market in Shandong has been significant. In the past half month, downstream equipment has been operating at a low level, and procurement volume is limited. Propylene enterprises are facing increasing export pressure, making profits and selling goods. In addition, due to the recent weakness of crude oil and multiple bearish pressures, the price of propylene has fallen significantly. There is a strong wait-and-see atmosphere in the market, with buying up rather than buying down. It is expected that the Shandong propylene market will mainly operate in a weak position.
The significant decline in propylene prices has led to a decrease in cost support for PP. In terms of industry load, the overall industry load this week was around 75%, and overall shipments remained stable. The on-site supply of goods is sufficient, and inventory pressure has increased. In terms of demand, the downstream plastic weaving production of the main force has slightly declined, while the production rate of film materials enterprises has decreased significantly. The stocking situation of terminal enterprises is poor, and procurement is mainly maintained for production.
In terms of fiber materials, according to the Commodity Market Analysis System of Business Society, as of May 12th, the spot price of domestic fiber PP has declined. The mainstream quoted price of domestic producers and traders for Z30S (fiber) is around 7462.50 yuan/ton, with an increase or decrease of -3.08% compared to the average price at the beginning of the month, and a decrease of 16.62% compared to the same period last year. This week, the low load adjustment pattern of downstream non-woven fabric enterprises, the main force of PP fiber material, continued, with an overall operating rate of around 30%. The current weak demand for fiber materials on the site is dragging down the digestion speed of non-woven end products, and the enterprise’s efforts to replenish fiber PP are lagging behind. In addition, the upstream bearish situation is expected to remain weak and stable in the short term.
In terms of melt blown materials, this week’s melt blown PP market fluctuated. As of May 12th, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of the Business Society is about 8225 yuan/ton. Compared with the average price level at the beginning of the month, the price has increased or decreased by -0.30%, with a year-on-year decrease of 18.56%. At present, the domestic health situation is stabilizing, and social consumption is becoming increasingly weak in driving medical meltblown fabric materials. The overseas demand has also not shown significant support, and traders have given up on orders, indicating that the melt blown material market may maintain a weak consolidation trend.
Future Market Forecast
PP analysts from Business Society believe that the polypropylene market has recently declined. The raw material propylene market has declined significantly, and the support from the cost side for the market is not good. Terminal enterprises tend to maintain production while receiving goods, with weak demand release. The market is biased towards bearish guidance, and it is expected that the PP market may maintain a weak consolidation trend in the short term.
| http://www.polyvinylalcohols.com |