SunSirs: Supply Increases and Demand is General, China PP Market Weakens

https://www.chemnet.com   Oct 25,2022 SunSirs

　　According to the data monitored by SunSirs, the PP market fell in mid October, and the spot prices of wire drawing brands fell. As of October 22, the mainstream offer price of T30S (wire drawing) by domestic manufacturers and traders was about 8,008.33 RMB/ ton, up or down by - 1.84% compared with the average price at the beginning of the month.

　　Industrial chain: In terms of upstream, the recent mainstream quotation of domestic propylene (Shandong) market is 7,400-7,450 RMB/ ton, and the price continues to decline in a narrow range. The atmosphere of market trading and investment is general, and the factory sells at a profit to stimulate the delivery of goods. Crude oil prices began to decline in mid October, and cost support weakened. In the second half of October, the performance of the chemical industry was average, with some products rising and falling, which depressed the mentality of the industry. The purchase and sales were not active, and the enthusiasm for propylene demand declined. It is expected that the short-term market of propylene will be dominated by weakness. Considering the continuous poor profitability of the propylene industry, the downward space may be limited.

　　Propylene prices fell, the remote cost of crude oil weakened, and PP cost support weakened this week. In terms of industry load, the maintenance scale of PP polymerization enterprises gradually decreased in the first half of the month, and this week, the maintenance scale further reduced by one fifth, the operating rate continued to increase, and the spot supply increased. In terms of inventory, as of this week, the two barrel oil depot had nearly 750,000 tons, a narrow decline compared with the previous one, and the social inventory and the inventory of terminal enterprises were running smoothly. In terms of demand, it is currently the traditional peak demand season, and the seasonal digestion and inventory operations are OK, but the downstream product market is not good, and the terminal enterprises begin to get weaker, among which the plastic weaving enterprises and BOPP enterprises generally weaken their inventory. The market mentality is empty, and businesses generally follow the trend of decline.

　　In terms of fiber materials, according to the data monitored by the business community, as of October 22, the spot price of domestic fiber PP fell on the whole. The mainstream offer price of domestic producers and traders Z30S (fiber) is about 8,050 RMB/ ton, up or down by -1.83% compared with the average price at the beginning of the month, and down by -14.21% year-on-year. In the near future, the load of downstream non-woven enterprises, the main force of PP fiber material, has increased by a narrow margin, the profit of spunbonded non-woven fabrics is average, and the demand of terminal enterprises is stable. The digestion speed of nonwoven end products is average. Generally speaking, the consumption support brought by stages is still in progress. The enterprise prefers to just take the goods for fiber PP replenishment. The delivery and investment of fiber materials on the site are general, and the fiber material market is mainly bottomed by the demand side. In the short term, it may still maintain a narrow adjustment operation.

　　In terms of meltblown materials, the market of meltblown PP has declined recently. As of October 22, the average quotation of domestic meltblown material sample enterprises monitored by the business community was about 9,000 RMB/ ton, up or down by -1.1% compared with the average price at the beginning of the month and -10.74% year-on-year. In terms of international health events, the current situation in various countries is still not optimistic, and the epidemic situation in China's neighboring countries has rebounded recently. After the festival, some parts of China rebounded slightly, but the overall epidemic prevention pressure was not strong, and the pulling effect on medical melt blown fabric materials was limited. The domestic and foreign demand has not significantly helped, and the support for spot prices is poor. The inventory of melt blown materials in the market is sufficient, and the saturation of domestic melt blown materials and cloth enterprises is high. It is expected that the recent market of melt blown PP will still run sideways

　　SunSirs PP analysts believe that the overall polypropylene market fell this week, the raw propylene market weakened, the distal upstream crude oil was weak, and the PP cost side support weakened. The terminal enterprises just need to get goods. Although the effect of the traditional peak season is not as expected, it still plays an important supporting role in terms of stages. The total inventory position of PP is stable with a decline, both the buyer and the seller operate cautiously, and the on-site trading needs to be improved. It is expected that China PP market will still be weak in the short term.

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