Polypropylene powder market in China has presented a sharp fluctuation status in the recent month, and the ups and downs of the PP powder price show a “roller coaster” path. As shown in the figure, from the middle and late November to the end of the month, the powder has been declining all the way, from 9,200 Yuan/MT to 8,200 Yuan/MT, with the price drop as much as 1,000 Yuan/MT.
In the early December, the market began to
rebound and saw a rapid rise after hitting the bottom, but it did not last and
began to decline few days later.
(Data Source: JLC)
Behind the Ups and Downs
The price of the raw material propylene
fell sharply due to the impact of the decline in international crude oil,
resulting a limited cost support to the powder. Besides, the spot price for
granular materials also fell more than once, and the pressure on the powder
market also increased. In addition, the weak demand and low operation rates of
the downstream factories lead to a low shipment of the PP powder.
At the beginning of December, the propylene
monomer began to rebound and gave a cost support to the PP powder, and PP
futures market improved to drive business operations. Moreover, due to the
early sluggish market for a long time,
the downstream inventory had consumed and began to replenish, therefore, the powder
prices began to rebound. However, when the downstream end finished their replenishment,
the transaction became low again. Even if the price of propylene is still
acceptable, but the powder market still lack of strong support and show a weak
At present, the international crude oil
slumped again. It is known that there is lack of advantage for the propylene
market price, and the overall trading volume is not good. It is expected that
the cost support to the PP powder is limited, and the low operation rate of the
downstream factories may result in a restricted raw material purchasing power. To
sum up, the powder market in the later stage does not have enough advantages, and
the market may resume the weak trend.