According to the Commodity Market Analysis System of the Business Society, the PP market rose in early September, with various wire drawing brands fluctuating and rising. As of September 12th, the mainstream quoted price of T30S (wire drawing) by domestic producers and traders is around 7914.29 yuan/ton, with an increase or decrease of+2.40% compared to the average price level at the beginning of the month.

Cause analysis

Industry chain: In early September, in terms of PP raw materials, the propylene market in Shandong fell, resulting in poor upstream supply and inventory accumulation. The focus of transactions continued to shift downwards. The price of methanol has also eased. However, there has been an increase in international oil prices, coupled with an increase in maintenance of PDH devices in the early stages, resulting in strong cost support for oil based and PHD based PP. Overall, the cost support for polypropylene is still acceptable.

The trend of raw materials in all directions has increased with a decrease, and there is support for PP on the cost side. In terms of industry load, the overall industry load has been around 78% recently, with a lower position compared to previous fluctuations. The overall supply of goods is stable, and the on-site supply of goods is sufficient. In terms of demand, there has been a slight increase compared to the previous period, with downstream plastic weaving production remaining at over 40% and leveling off. In terms of film materials and injection molding, the operating rate of enterprises has remained around 60%, with an overall position of horizontal. The stocking situation of terminal enterprises is based on demand procurement, and the market performance is gradually warming up due to the influence of traditional peak seasons. It is expected that the consumption of plastic weaving and packaging may show a seasonal increase.

In terms of fiber materials, according to the Commodity Market Analysis System of Business Society, as of September 12th, the spot price of domestic fiber PP has increased. The mainstream quoted price of domestic producers and traders for Z30S (fiber) is around 7925 yuan/ton, with an increase or decrease of+3.43% compared to the average price at the beginning of the month, and a decrease of -2.56% compared to the same period last year. Recently, the main downstream non-woven fabric enterprises of PP fiber materials have seen a narrow increase in load, with an overall operating rate of over 35%. The demand for fiber materials in the market has increased compared to the previous period, and the digestion speed of non-woven end products is still acceptable. The enterprise’s efforts to replenish fiber PP have increased the industry load. It is expected that in the short term, there may be cost and demand support for fiber materials, leading to a stronger finishing operation.

In terms of melt blown materials, the recent melt blown PP market has been relatively strong. As of September 12th, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of the Business Society is about 8175 yuan/ton, which is 0.93% higher than the average price level at the beginning of the month and 11.46% lower than the same period last year. At present, the domestic and international news of the health incident has basically subsided, and the consumption of medical meltblown fabric materials is weak. There is also no significant boost in domestic and foreign demand. The main support for the market is the cost side, and it is expected that the melt blown material market may maintain a stronger consolidation market.

Future Market Forecast

PP analysts from Business Society believe that the polypropylene market rose in early September. The overall trend of upstream raw materials is relatively strong, and the support from the cost side for the market is still acceptable. The construction of terminal enterprises continues to maintain the previous level, and goods are just needed. It is expected that the PP market will gradually enter the peak season and continue to strengthen in the short term.