Propylene Soared 100% in a day Caused by Meltblown Fabric material Rose

On April 12, the propylene market price in Shandong continued to skyrocket, and the single-day price increase was generally more than  RMB1,000/metric ton, an increase of 35.02%. Some enterprises have soared RMB 5,000 / metric ton, an increase of nearly 100%. Last month, propylene prices in Shandong region fluctuated and fell, and they fell sharply again at the end of the month, with a monthly decline of more than 15%. On April 1st, the price continued to fall by 100 ~ 200 CNY/ton, and on April 2nd, there was still a downward trend of about 50 CNY/ton. On April 3, the prices of some enterprises rose by 50 ~ 100 CNY/ton, and the price of propylene rose steadily during the period of Qingming Festival. From April 7th, the price rose by about 100 CNY/ton every day, and on April 10, it rose by 200 ~ 300 CNY/ton. On April 11, there was a general upward adjustment of more than 1,000 CNY/ton, and on Sunday,Apr 12th, it continued to skyrocket by 1,000-5,000 CNY/ton. The market turnover has soared to 8,000 ~ 12,000 CNY/ton, and some manufacturers have suspended quotation.

Affected by the international situation, many countries now have policies to reduce production. It is good for the crude oil market and propels the price of propylene.

On the other hand, due to the impact of public health incidents, the prices of meltblown fabrics have skyrocketed, and their raw materials are also more favorable. The modified special material in PP is the material of melt-blown cloth, and the price is obviously rising. PP futures are now continuously rising, and there is a daily limit on Friday, which has a great positive effect on the price of propylene.

Specifically speaking, PP fiber materials have been widely concerned this year because of their mask applications and there has been a surge in demand. From January to March, the total domestic fiber material supply output was about 775,000 tons, and the year-on-year increase was not very obvious. But after entering April, especially the sudden increase in demand before and after the Ching Ming Festival, the price of fiber materials rose sharply, making its profits soared to nearly five figures. It makes polypropylene manufacturers' enthusiasm for arranging fiber materials increase. However, the production lines of downstream factories are constantly increasing, and short-term supply and demand are still seriously mismatched. As a result, since April 11, as a raw material for polypropylene, the price of propylene has also skyrocketed.

Upstream production cuts are good, downstream purchase enthusiasm is good and raw materials are in short supply. It is expected that the price of propylene may still have a large upward adjustment in recent days.