Plastic Market Forecast on December 8, 2023

Dec 08, 2023

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Yesterday, the price of polyethylene in the PE market partially declined, with a range of 20-100 yuan/ton and a linear transaction price of 7950-8600 yuan/ton. International crude oil futures plummeted, with weak and volatile overnight linear futures. The trading atmosphere has cooled down, and terminal orders have followed up slowly. The downward pressure on prices has increased, and the wait-and-see mentality of merchants has intensified. It is expected that the polyethylene market will narrow down today.

Today’s forecast: It is expected that the polyethylene market will experience a narrow consolidation.

【 PP Market 】 Yesterday, the prices of polypropylene remained stable and consolidated. The concentration of short-term temporary shutdown devices eased the pressure on PP spot, and traders showed little willingness to offer discounts for shipment; Downstream acceptance of current prices is still acceptable, but the pace of market procurement is already ahead of schedule, with a focus on wait-and-see. As of noon, the mainstream of wire drawing in East China is between 7380-7480 yuan/ton.

Today’s forecast: The short-term improvement difficulty of the PP market is relatively high, and it is expected that the weak operating attitude will continue.

【 PVC Market 】 Yesterday, PVC futures opened high and fluctuated, and the overall trend of the spot market was relatively stable. Some brand prices adjusted slightly, and merchants mainly shipped more, with flexible transactions. The ex factory quotation of PVC production enterprises has not changed much, and some still maintain sealing. Downstream demand is lackluster, and product manufacturers have limited access to goods, so they do not change their initial needs. In addition, the night trading of PVC futures has fallen again, which will have a bearish impact on the spot market. Market reference: The PVC market price in Hebei region has slightly increased. The reference price for carbide method 5-type material, including tax, is around 5560-5610 yuan/ton in spot exchange. The reference price for Inner Mongolia material delivery is around 5330-5380 yuan/ton, which is relatively chaotic. Actual transactions are subject to negotiated prices.

Today’s forecast: In the short term, the PVC market will still be dominated by stable adjustment.

【 PS Market 】 Zhangjiagang styrene fluctuated and rose overnight, but the international crude oil decline has expanded, which may impact the market mentality. Merchants have a strong wait-and-see attitude and are cautious in their operations. Downstream procurement for urgent needs, negotiate and offer discounts based on actual prices. Market reference: There is not much fluctuation in the Ningbo PS market quotation. Saibaolong 525 is priced at 8750 yuan/ton (self pickup), Taihua 535N is priced at 9700 yuan/ton, and 8250 is priced at 9900 yuan/ton.

Today’s forecast: It is expected that the short-term PS market will be weak and volatile.

Although styrene closed higher in the ABS market, overnight crude oil fell significantly, once again impacting market sentiment. Merchants have a strong wait-and-see attitude, and some may maintain a concession operation. The mainstream price for domestic supply of ABS (acrylonitrile butadiene styrene) in the East China market is between 9200 and 10300 yuan/ton.

Today’s forecast: It is expected that the ABS market will be weak and volatile today.

The PET bottle market has seen a continuous decline in international oil prices, and the cost side is not optimistic. There is a clear increase in the spot supply of PET bottle chips, but downstream factory demand has not shown significant improvement, and there is insufficient enthusiasm for entering the market for procurement, resulting in poor transactions.

Today’s forecast: It is expected that the PET market will consolidate and operate on a wait-and-see basis today.