According to the data monitored by the business society, the recent trend of PP market has fallen, and the spot prices of various brands have fallen greatly. As of October 22, the mainstream offer price of T30S (wire drawing) from domestic manufacturers and traders was about 9116.67 yuan / ton, up or down – 1.26% compared with the average price at the beginning of the month.

Cause analysis

Industrial chain: in terms of raw propylene, the propylene market in Shandong continued to decline this week, with a large range. The market trading returns to rationality, the willingness of downstream buyers is not strong, and the willingness of enterprises to take goods is obvious due to the impact of low-price goods. Downstream demand is the main demand. Although crude oil prices continue to rise, there is insufficient support. It is difficult to further improve the long and short game in the propylene market. It is expected that the propylene market will maintain a weak shock in the near future.

The price of direct raw material propylene fell, while the national development and Reform Commission strengthened the investigation and punishment of malicious speculation of coal by capital, which is expected to suppress the coal price and weaken the cost side support of PP. In addition, local environmental protection policies affect the industry and its downstream operating rate, and the downstream demand is lower than that in the same period of previous years, dragging down the spot price of PP. In terms of inventory, enterprises decreased and agents increased. Near the end of the month, some profit-making businesses had significant profit transfer operations.

In terms of fiber materials, according to the data monitored by the business society, as of October 22, the spot price of domestic fiber PP fell. The mainstream offer price of Z30S (fiber) from domestic manufacturers and traders was about 9300.00 yuan / ton, with a weekly rise and fall of – 6.06%, with a year-on-year increase of 12.27%. The demand for PP fiber material this week is general. At present, the proportion of domestic fiber material production is medium and low, the demand of the main downstream non-woven enterprises is weak, and the digestion level of end consumer goods is stable. Fiber materials fell due to the impact of energy stagflation and propylene reduction.

In terms of melt blown materials, the melt blown PP market has fallen slightly recently, and the spot price has been adjusted at a high level. As of October 22, the average quotation of domestic melt blown material sample enterprises monitored by business society was about 10083.33 yuan / ton, up or down – 1.31% in the week. At present, sporadic local diagnosis of domestic health events has a little pulling effect on the melt blown cloth market. However, affected by the decline of raw materials, the survival of melt blown cloth enterprises is still difficult, and there are few devices still producing melt blown PP in China.

Future forecast

PP analysts of business society believe that the domestic polypropylene market fell this week, propylene and coal weakened at the cost side, and the upstream support for PP weakened. The load of terminal enterprises is lower due to environmental protection regulations, and the traditional peak demand season ends, so the on-site demand follow-up is poor. Merchants give away the profit order, and the offer is reduced by a large margin. It is expected that the PP market may be weak in a narrow range in the short term.