According to the Commodity Market Analysis System of SunSirs, the PP market has been fluctuating and consolidating recently, with prices of various wire drawing brands fluctuating. As of May 11th, the mainstream quoted price for T30S (wire drawing) by domestic producers and traders is around 7,807.14 RMB/ton, up or down -0.46% from the price level on May 6th.
Industry chain: In terms of PP raw materials, international crude oil prices have weakened due to the downward trend before and after the holiday. Recently, due to the positive expectation of OPEC+production reduction and the influence of international geopolitical factors, oil prices have rebounded. Meanwhile, due to its impact, the overall price of propylene has increased. The domestic market momentum for propane is relatively strong, with strong price movements. Overall, the cost support for PP has remained relatively strong in recent times.
Overall, the raw material market is strong, and the cost support for PP is still acceptable. In terms of industry load, the average load this week is around 75%, which is comparable to the pre holiday level. And there are still maintenance plans for enterprises such as Zhenhai Refining and Chemical and Ningbo Jinfa in the later stage, leading to an expected reduction in market supply. The inventory of production enterprises is gradually being digested, and supply pressure is expected to decrease. In terms of demand, the load of terminal enterprises has generally remained stable, with downstream PP enterprises such as plastic weaving, film materials, and injection molding having a comprehensive operating rate of about 42%, 62%, and 57% at the end of the month, respectively. The replenishment operation of enterprises is mainly based on demand, and the trading atmosphere is average.
In terms of fiber materials, according to the commodity market analysis system of SunSirs, as of May 11th, the spot price of domestic fiber PP has experienced a narrow decline. The mainstream quoted price for domestic producers and traders of Z30S (fiber) is around 7,712.50 RMB/ton, with an increase or decrease of -0.16% compared to the average price at the beginning of the month, and an increase of 2.66% compared to the same period last year. After the holiday, the main downstream non-woven fabric enterprises for PP fiber materials have a stable and stable load, with an average operating rate of around 29%. The trading volume in the non-woven fabric market is average, and orders are mainly based on contracts. The digestion speed of end products has slowed down, and it is expected that the future market of fiber materials may still be constrained by weak demand and consolidation operations.
In terms of materials, the melt blown PP market remained stable with some gains this week. As of May 11th, 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 +0.16%, with a year-on-year decrease of 2.13%. At present, the demand for facial protection in China is generally high, and the consumption of medical melt blown fabric materials is not significantly driven. In addition, the downstream factories have low load, and most of the new orders are scattered. It is expected that the temperature will heat up in May, and the digestion of terminal products will slow down. Melt blown materials may weaken due to the drag of demand.
PP analysts from SunSirs believe that the overall polypropylene market has fluctuated and stabilized after the holiday. The overall trend of upstream raw materials is relatively strong, and the support from the cost side for the market is still acceptable. There is an expectation of contraction in the supply of goods, and the supply pressure has eased. The production of terminal enterprises is stable, and stocking is essential to maintain production. The current supply and demand in the market are relatively weak, and the dominant force is still the cost side. It is expected that the PP market will maintain a consolidation operation in the short term.
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