According to the Commodity Market Analysis System of SunSirs, the PP market has been relatively strong recently, with overall increases in various wire drawing brands. As of July 28th, the mainstream quoted price of T30S (wire drawing) by domestic producers and traders is around 7,400 RMB/ton, with a +3.29% increase or decrease compared to the average price level at the beginning of the month.
Industry chain: On the upstream side, international crude oil rose this week, while driving up the trend of the propylene market. In addition, with a wide reduction in propylene prices in the early stage, the current downstream purchasing willingness is still acceptable, and the market has been repaired. At the same time, upstream propane prices in PDH are also relatively strong, while coal prices remain stable. The overall strength of polypropylene upstream is relatively strong, which provides reasonable support for the cost side.
The raw materials in all directions have steadily increased, and the cost support for PP is still acceptable. In terms of industry load, the overall industry load remained above 74% this week, with a relatively flat position compared to the previous period. The overall supply of goods was stable, and the on-site supply of goods was sufficient. In terms of demand, it tends to be average, with the main downstream plastic weaving operating at 40% to 50%. In terms of film materials and injection molding, the operating rate of enterprises remains at the previous level, and the overall position is relatively good. The stocking situation of terminal enterprises is average, and procurement mainly maintains production.
In terms of fiber materials, according to the Commodity Market Analysis System of SunSirs, as of July 28th, the spot price of domestic fiber PP has increased. The mainstream quoted price of domestic producers and traders for Z30S (fiber) is around 7387 RMB/ton, with an increase or decrease of 3.50% compared to the average price at the beginning of the month, and a decrease of -9.36% compared to the same period last year. This week, the downstream non-woven fabric enterprises, the main force of PP fiber materials, maintained a low level of load, with an overall operating rate of around 30%. The demand for fiber materials in the market is weak, and the digestion speed of non-woven end products is average. Enterprises have average efforts in replenishing fiber PP. The price increase is due to the overall inventory reduction of polypropylene and the positive impact of stronger costs. It is expected that fiber materials may continue to operate in a stronger direction in the short term.
In terms of melt blown materials, this week's melt blown PP market saw a narrow rise. As of July 28th, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of SunSirs is around 8,050 RMB/ton. Compared with the average price level at the beginning of the month, the increase and decrease is +2.22%, and there is a 14.06% decrease compared to the same period last year. At present, there is little domestic news on health events, and local social news is powerless to drive the consumption of medical meltblown fabric materials. There is also no significant boost in overseas demand. Affected by the cost side and destocking, melt blown material enterprises have increased their factory prices. It is expected that the melt blown material market may maintain a volatile consolidation trend.
PP analysts from SunSirs believe that the polypropylene market has been rising recently. The market for raw materials such as propylene and crude oil has risen, and the support for the market from the cost side has increased. The operating rate of terminal enterprises is average, and the demand for goods tends to maintain production, while the demand release is flat. Market orders are at a low season level. However, the overall inventory continues to decline, and it is expected that the PP market may continue to lean towards consolidation and operation.
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