According to the data monitored by the business society, the PP market was generally weak in early August, and the spot prices of various brands fell. As of August 10, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 8333.33 yuan / ton, a decrease of 1.77% compared with the average price at the beginning of the month and an increase of 4.60% year-on-year.
Cause analysis
The domestic (Shandong) market of PP upstream propylene was under pressure in early August, and the price continued to decline. As of the 10th, the market was 7645.82 yuan / ton, down 2.29% from the 1st. In terms of international crude oil, crude oil prices fell sharply due to the slowdown in demand caused by delta virus, further amplification of concerns, and concerns about oversupply caused by the increase in production in oil producing countries. Propylene prices fell, the market bearish mentality was strong, and the downstream demand was ok, but the negative impact of cost was strong, and the demand support was weak. At present, the cost of propylene dominates the market, and crude oil is bearish in the future. It is expected that the propylene market will maintain a weak downward trend.
The price of upstream propylene fell, and the cost side support of PP weakened recently. In terms of industrial operation rate, there are currently resumption devices in China to resume production. In addition, the new production capacity has not been started. At the same time, the domestic drawing PP material inventory has also increased, and the market supply shows an increasing trend. In terms of demand, the follow-up is weak, and the purchase operation of downstream factories is just in demand, focusing on maintaining production. The atmosphere in the venue has not yet got rid of the off-season color, and the spot price is under pressure.
In terms of fiber materials, according to the data monitored by the business society, as of August 10, the mainstream offer price of domestic manufacturers and traders Z30S (fiber) was about 8483.33 yuan / ton, a decrease of 0.39% compared with the average price at the beginning of the month and an increase of 8.53% year-on-year. Domestic fiber PP spot fell slightly in the first ten days, and the recent production scheduling accounted for more than 12%, but increased to a certain level compared with the end of the month. At present, the demand for fiber PP is general, and the price of main downstream non-woven fabrics is stable in the first ten days, stable at around 11000 yuan / ton. There is no large-scale demand for end consumer goods, the market is weak and consolidated, and the outlook is mostly stable.
In terms of melt blown materials, the melt blown PP market increased in the first ten days, and I heard that the spot offer price in the field increased. As of August 10, the average quotation of domestic meltblown material sample enterprises monitored by business society was about 9566.67 yuan / ton. At present, the impact of health events has expanded, the international demand for epidemic prevention has increased, and the orders of downstream melt blown cloth have begun to increase. In the early stage, due to the high market saturation of domestic melt blown cloth products, there are few devices still in production in China. At the same time, it also makes the market normally feed back the impact of increased demand. It is expected that the price of melt blown PP may continue to be strong.
Future forecast
PP analysts of business society believe that the overall shock of domestic polypropylene market in early August is weak, and the trend of spot price is different. The demand level of downstream enterprises is still not high, and the operation of hoarding goods in advance for the traditional peak season in September has not been heard. The supply of high priced goods in the venue is under pressure, and businesses prefer to sell goods at a profit. The upstream propylene market followed the decline of crude oil, and the cost side support of PP weakened. The market mentality is general, and it is expected that the PP price may continue the weak consolidation pattern in the short term.
| Thiourea |