The decline of PP non-woven fabric operation rate was mainly due to the increase of mask inventory in downstream, and the sharp decline of mask cloth demand. The orders of non-woven enterprises increased suddenly when the epidemic situation was repeated in January, and the production was scheduled until the end of February and early March. As of this month, the old orders had ended, but the new orders had not increased significantly. To the domestic non-woven fabric operating rate reached the lowest since the outbreak of about 60%.
From the price trend of spunbonded non-woven fabrics, affected by orders, this month has dropped to the lowest price of 12500 yuan / ton since the outbreak. In 2020, the birth rate of newborns in China will drop precipitously. Diapers, one of the main downstream products of spunbonded non-woven fabrics, will be affected by the drop of birth rate in China. Orders of spunbonded non-woven fabric enterprises will decrease sharply, and some non-woven fabric enterprises have aimed at the foreign market. From the production cost point of view, the price has dropped to the cost line, and it is expected that the price of spunbonded non-woven fabrics will fluctuate in the future.
The proportion of fiber production capacity increased from 15.15% on March 10 to the lowest 6.88% since 2020 by March 24 due to the operating rate and orders of downstream enterprises. The inventory of fiber grade polypropylene manufacturers was 65800 tons, an increase of 6.82% compared with last week.
In general, with the decline of domestic demand for masks and diapers, the operating rate of upstream raw materials PP non-woven fabrics and fiber materials has declined, and the prices have been lowered. With the arrival of the off-season of warmer weather and diapers, it is expected that PP non-woven fabric enterprises will face a new wave of pressure.