The operating rate of PP non-woven fabrics declined, mainly due to the increase in downstream mask inventories, and the demand for mask fabrics fell sharply. Non-woven fabric enterprises in January when the epidemic repeated the sudden increase in orders, scheduled to the end of February and early March, as of this month the old orders have ended, but the new orders have not increased significantly. The operating rate of non-woven fabrics in China has reached the lowest level of about 60% since the epidemic.

Judging from the price trend of spunbond non-woven fabrics, affected by orders, this month has fallen to the lowest price of about 12,500 yuan/ton since the epidemic. In 2020, the domestic birth rate of newborns will fall off a cliff, and diapers, one of the main downstream of spunbond non-woven fabrics, will be affected by the decline in the domestic birth rate, and the orders of spunbond non-woven fabric enterprises will decrease sharply, and some non-woven fabric companies have aimed at foreign markets. From the perspective of production costs, the price has fallen to the cost line, and it is expected that the price of spunbond non-woven fabrics will fluctuate steadily in the later period.

The proportion of fiber production capacity increased from 15.15% on March 10, and reached the lowest 6.88% since 2020 as of March 24, affected by the operating rate and orders of downstream enterprises. The inventory of fiber-grade polypropylene production enterprises was 65,800 tons, an increase of 6.82% from last week.

On the whole, the decline in domestic demand for masks and diapers, to the decline in the operating rate of upstream raw materials PP non-woven fabrics and fiber materials, followed by price reductions, with the advent of the off-season of diapers in warmer weather, it is expected that PP non-woven enterprises will face a new wave of pressure.