Introduction: With the recent release of the domestic epidemic, the demand for N95 masks increases, and the polypropylene market reappears the mask market. The prices of the upstream raw material melt-blown material and melt-blown cloth have risen, but the upstream PP fiber is limited. Can the PP market usher in a wave of growth in the later stage?
As the epidemic is fully unsealed, the polypropylene market has ushered in a wave of mask market, and the prices of melt-blown material and melt-blown cloth related to masks have risen, among which the price of melt-blown material has risen to 12,000-15,000 yuan/ton, and the price of melt-blown cloth has risen to 60,000 yuan/ton, but the price of PP fiber has limited to keep up. High melt fiber S2040 rose from 8150 yuan/ton to 8300 yuan/ton.
As fears of a global recession persist and bearish sentiment prevails, the recent drop in oil prices to record lows for the year has weakened the cost support for polypropylene. With new installations still scheduled to come on stream by the end of the year, supply pressure has increased.
Up to now, China has put into operation 2.8 million tons of new installations/year in 2022, and there are still 450,000 tons/year of Zhonghua Hongrun, 300,000 tons/year of Guangxi Hongyi, a total of 750,000 tons/year of production capacity planned by the end of the year. In addition, Jingbo Petrochemical, Guangdong Petrochemical, Hainan Petrochemical Phase II, Anhui Tiantai and other enterprises are expected to postpone the production to 2023.
From the point of view of polypropylene maintenance, the recent parking maintenance enterprises are more, but with the subsequent resumption of driving, the overall supply shows an increasing trend, the supply side of the market support is limited.
In terms of the operation of the main downstream areas, in addition to non-woven fabrics, the operation rate increased significantly due to the epidemic, while traditional plastic knitting, injection molding and other fields continued to be weak. With the full unsealing of the epidemic, the demand is expected to be strong, which forms a certain support for the spot market price.
On the whole, the new equipment at the supply end is put into operation and the maintenance is started, and the supply pressure continues to act on the market, combined with the weakening of short-term cost support, resulting in a pressure on the market. Driven by the downstream demand for masks, the relevant raw materials have increased significantly, but the upstream PP has limited to follow up. It is expected that in the near future, driven by the mask market, the PP market temporarily reversed the downturn and strengthened slightly, bringing a wave of finishing market to the difficult year of 2022.
Post time: Dec-14-2022