According to the data monitored by the business agency, the market trend of domestic PP market in the second half of May was strong, with different brand materials rising and falling. As of May 28, the main offer price of T30S (wire drawing) by domestic producers and traders was about 7616.67 yuan / ton, an increase of 0.66% compared with the average price at the beginning of the month.
Upstream, the domestic propylene market price rose steadily in the first half of May. Last month, the propylene price in Shandong remained stable again after a sharp rise and fall. Last weekend, the price of propylene fell slightly. On the 25th, the price of propylene fell again by 50-150 yuan / ton. On the 26th, the price still fell by about 100 yuan / ton. On the 27th, it fell by 100-150 yuan / ton. Now, the market transaction is between 6500-6600 yuan / ton, and the mainstream price is between 6500-6600 yuan / ton. Influenced by the international situation, the international crude oil price rose significantly at the end of last week. Now, the crude oil is still rising, but the trend is slowing down. On Monday, 18th, the price rose significantly, and slightly fluctuated from 19th to 21st. On Friday, 22nd, the price was lowered, and closed on Monday. On the 26th, the crude oil slightly recovered, which has limited impact on the good of propylene. On the other hand, the cost of some downstream products is under pressure. By reducing production and stopping production, the operating rate has declined, the delivery and investment has become increasingly cold, and the pressure of the manufacturer’s shipment has increased, so it is expected that the price of propylene will still decline in recent days.
Although the upstream propylene price has fallen, it is still at a high level, which supports the cost end of PP fairly well. PP (brushed) rose slightly in the second half of May. In the first half of this month, the domestic PP market showed correction due to the cooling of speculation atmosphere in April. At present, the price tends to be rational and the market tends to be strong and volatile. The delivery situation of this month is good, and there is not much room for negotiation of the actual order near the end of the month. The operating rate of domestic production enterprises and social inventory have declined, and the port inventory has continued to decline, which is expected to provide some support for the price of polypropylene. At the end of the month, spot market transactions were relatively light.
According to the data monitored by the business association, as of May 28, the main quoted price of Z30S (fiber) for domestic producers and traders was about 7750.00 yuan / ton, an increase of 0.43% compared with the average price on May 18. At first glance, compared with the beginning of the month, the spot price of fiber PP in the first half of the month dropped by nearly 9%, which is actually a “retaliatory” drop in the speculation of fiber last month. In the second half of the month, the spot price is not at a low level. Although the demand for social health events is slowing down, in fact, the current price is stronger than before the hype. In the second half of May, the factory price of PP fiber material was generally adjusted slightly. Since 18th, the spot price has been stable, and on 25th, the price of PP fiber material was generally increased by about 50 yuan / ton.
In terms of melt blown material price, it has fallen down recently. As of May 28, the data of sample enterprises monitored by the business association showed that the average price of melt blown polypropylene of general private enterprise melt blown resin 1500 was about 23666.67 yuan / ton, a large drop compared with the beginning of the month. Foreign public health events tend to be ambiguous, and foreign trade masks are still in great demand. At present, some countries in Europe have relaxed the standards for the export of masks in China, which undoubtedly has a positive effect on the domestic melt blown materials. However, with the expansion of domestic production capacity and the continuous improvement of China’s prevention and control achievements, the overall price of melt blown PP is lower. In addition, the relevant departments have strengthened the standardization of the industry before, and the current production recovery of melt blown PP downstream is insufficient. It is expected that the price of melt blown PP in the future will continue to be adjusted in a narrow range.
PP analysts of the business club think: the domestic PP spot market rose and fell in the second half of May. The upstream propylene delivery pressure increased, and the price had a correction. But the overall level is still high, and the support for PP is acceptable. PP (drawing) price is the main, PP (fiber) price callback back to rationality. PP (melt blown) demand was affected and prices fell. At present, the inventory of two barrels of oil is smooth, and the willingness to stand up is obvious. At the end of the month, most businesses completed their tasks, went with the market, and there was not much room for negotiation. Downstream construction started to decline, and the mentality of high price goods is obvious, the demand follow-up is limited. It is expected that the PP market will be carefully sorted out in the near future, and it is suggested to pay attention to the further trend of the supply and demand side.