This week, the price of polypropylene powder material rose first and then fell, but the overall fluctuation range was not large at around 100 yuan/ton. It is expected that the price of polypropylene powder material will be adjusted weakly next week. Domestic BOPP film prices continued to decline this week, and the focus of transactions continued to decline. It is expected that BOPP thick film will continue to decline next week.
This week, the price of polypropylene powder material rose first and then fell, but the overall fluctuation range was not large at around 100 yuan/ton. At the beginning of the week, the polypropylene futures market fluctuated higher, and the mentality of the industry improved slightly. In addition, the impact of environmental protection and power rationing disappeared. The performance of downstream demand improved slightly. The price of powder material rose slightly. However, the polypropylene futures market fell significantly afterwards, which was negative for the market sentiment. In addition, some low-priced pellets impacted the powder market, and the powder shipment was not smooth. Some powder manufacturers worried about the accumulation of inventory. The powder market declined significantly. According to Zhuo Chuang's statistics, the average powder price this week was RMB 7912.5/ton, down 0.35% from the week before the holiday. (The above prices are based on Shandong area as an example)
Forecast: Cost aspect, propylene monomer price or stalemate finishing mainly, the gross profit of the powder industry is close to the cost surface at this stage, and there is a certain support for the cost aspect; in terms of alternatives, the price difference of powder and granular materials is small, and the high price of powder materials is under pressure to sell. Price pellets have a greater impact on the powder market; on the supply side, some early-stage parking devices restart, and market supply may increase; on the demand side, downstream factories have normal production, but some downstream factories chose to have early holidays before the Spring Festival in previous years. You should be vigilant The demand fades. On the whole, the supply of low-priced pellets in the market is suppressed and the demand may be weakened. The price of powder may still be lowered, but the price of propylene monomer will be stalemate or provide a certain support for the powder market. Zhuo Chuang predicts that the price of polypropylene powder market will be adjusted weakly next week, and the price range in Shandong is expected to be 7700-7900 yuan/ton.
This week, the domestic BOPP is consistent with Zhuochuang's forecast last week. Film prices continue to decline, and the transaction center continues to fall. As of Thursday, the thick film in Eastern China was 10800-11100 yuan/ton, down 350 yuan/ton compared to the same period last week, 1550 yuan/ton lower than last week, and 900 yuan/ton higher year-on-year; North China fell 150 yuan/ton to 11300- 11,500 yuan/ton; South China fell 500 yuan/ton to 10800-11200 yuan/ton. Retail thick film followed the decline, excluding value-added tax Chaoshan fell 6,10,600 yuan/ton, Yiwu fell 250 to 11,100-11,300 yuan/ton; tax-included Tongcheng fell 4,13,000 yuan/ton. This week’s crude oil adjustments have not yet affected the market. PP futures have been adjusted frequently, petrochemical plants have been adjusted up and then have fallen, and the spot price range has fluctuated back and forth. The cost orientation is still unclear; BOPP film plants are still inadequate in the follow-up of new orders this week. Compared with last week's change (the average daily trading volume was around 100 tons), the center of real order transactions continued to move downward. The trading range of thick light film this week is 10500-11200 yuan/ton, and the price on Thursday is 10500-11000 yuan/ton. The price difference between thin film, matte film, heat seal film and pearl film and thick film is gradually narrowing. It is recommended to pay close attention. On January 7th, the price difference between 18μ light film and thick light film is 800-1300 yuan/ton. It is recommended to pay attention to the future trends.
Forecast: Looking at next week, BOPP will continue to decline, the focus of transactions will continue to drop, and film factories will give priority to orders. Crude oil is expected to adjust strongly, but the current boost to the membrane market is insufficient. From the perspective of the PP market, petrochemicals are still expected to lower their inventory, and the downstream procurement enthusiasm is average, and the spot price weakens and the adjustment probability is greater. The follow-up of BOPP new orders is limited, the downstream demand is weak, and the purchasing enthusiasm is not high; the market is no longer tight, and the phenomenon of film factories making profit orders is increasing; and the current BOPP profit margin is still high, if the demand is not effectively reversed, the profit will be narrowed Space operations will continue. Zhuo Chuang predicts that BOPP thick film will continue to decline next week, the mainstream of thick film in East China is 10400-11200 yuan/ton, and the transaction center may be 10200-10800 yuan/ton; thin film, matte film, pearl film, heat seal film, etc. Focus on the delivery of accumulated orders, pay close attention to the adjustment of the price difference between various types of film and thick film and the delivery of accumulated orders of film factories. Environmental protection in the north and the repeated epidemics in some areas still suppressed market demand to a certain extent; and the current market buyers and sellers are more concerned about when the market will be closed before the Spring Festival in 2021, and most of them are worried about the early closure.