Preface
Polypropylene (PP) downstream industries went to different directions. For example, the plastic woven industry entered slack season, and operating rates at some enterprises decreased to 50%-60%. However, in automobile and household appliance industries, the market atmosphere warmed up, and there were more and more orders. But export orders were affected a lot by public health events in H1, 2020.
Traditionally, June and July belong to a relatively slack season for the plastic woven industry. Entering June this year, some middlemen reported that plastic woven enterprises’ demand for PP weakened. The overall operating rate at plastic woven enterprises has also declined recently. The operating rates at some enterprises dropped to 50%-60%. In the first half of this year, the domestic sales of plastic woven bags were not greatly affected by public health events, but exports were greatly affected. Enterprises that mainly supply resources to export markets are currently not working well.
In the BOPP industry, operating rates remained low in the first half of this year, due to the orders. Besides, the profits at BOPP enterprises were relatively low, further restricting the overall operating rate.
China’s automobile market is getting rid of the impact of public health events and gradually recovering, and the automobile output remained in an uptrend from April to May. According to the data released by the China Association of Automobile Manufacturers, the output of automobiles was 2.187 million in May, an increase of 18.2% from the previous month and 4.1% higher than output in the same period of last year.
According to the feedback from the modification plant, orders related to automobile parts started to improve in April and May, mainly due to the delayed recovery of demand. At present, the number of orders is stable, but it will not continue to rise.
