According to the data monitored by SunSirs, the domestic PP market trend in August was strong, and the spot prices of some brands rose slightly. As of August 31, the mainstream offer price of T30S (wire drawing) of domestic manufacturers and traders was around 8,016.67 RMB/ ton, an increase of 2.78% compared with the average price at the beginning of the month.
Market Analysis
The domestic market price of PP upstream propylene fluctuated periodically in August. After the upward trend broke through the original range at the beginning of the month, it fluctuated and stabilized, reaching 6,848 RMB/ ton at the beginning of the month; at the end of the month, it was 6,940 RMB/ ton, with a monthly increase of 1.34%; the current market turnover was between 6,880 RMB/ ton and 7,250 RMB/ ton, and the mainstream price was about 6,900 RMB/ ton. Propylene manufacturers to ship smoothly, inventory pressure, propylene prices are expected to rise.
Upstream propylene fluctuated and rose in August with a strong trend, which supported the cost side of PP. According to the data monitored by SunSirs, the market performance of PP (wire drawing) in August was stable and rose slightly, and the spot price was adjusted slightly. At present, there is an upward trend in the quotation of merchants, and the intention of price reduction in the downstream is obvious. It is expected that the upward adjustment range of PP (wire drawing) price will be narrowed.
According to the data monitored by SunSirs, as of August 31, the mainstream offer price of domestic manufacturers and traders Z30S (fiber) was about 7,983.33 RMB/ ton, compared with the average price at the beginning of the month, it increased by 2.57%. At present, the supply and demand of domestic PP fiber material and drawing material are stable, and the operation situation is similar. ChinaPP (fiber) is expected to continue finishing market in the near future.
PP meltblown material market weakness continues, domestic PP melt blown material market confidence is insufficient, the price continues to fall. According to the data monitored by SunSirs, PP (melt blown) in August decreased by 11.35% compared with last month. But overseas demand has not decreased. At present, the epidemic prevention materials are more diversified, and the demand for meltblown materials is also scattered. The demand for PP (melt blown) has not improved, and the business mentality is negative. It is expected that the melt blown materials will still be difficult to improve in the near future.
Market Forecast
SunSirs PP analysts believe: in August, China domestic PP spot market trend shocks strong. Upstream propylene market is strong; there is support for PP cost side. PP (drawing) and PP (fiber) fluctuated and rose, PP (melt blown) demand continued to be weak, prices continued to callback. The current inventory decline, supply expansion expectations and futures rise and other mixed news at the same time. Downstream factory stock situation is OK, business offers have increased. China PP spot price is expected to narrow the range of adjustment in the near future.
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