Plastics: Summary Of This Week’s Market And Future Prospects

Mar 03, 2023

Leave a message

PP powder

The market price of polypropylene powder rebounded slightly after falling this week. As of this Thursday, the price of powder in Shandong was around 7800 yuan/ton, 50 yuan/ton lower than that of last Thursday. In the first half of the week, the main polypropylene futures market was weak, the market atmosphere was not good, the traders’ intention to sell profits was obvious, and the powder price was lower, but the demand of downstream factories was not improved, the replenishment enthusiasm was not high, and the overall trading atmosphere of the market was slightly flat; In the second half of the week, the main polypropylene futures market rose, the mentality of the industry improved slightly, and the support of the powder cost remained, the traders’ offer increased in a narrow range, the market’s low price offer decreased, and the powder price rose steadily.

In the week as a whole, the fluctuation range of powder price is not obvious, and the price center moves downward in a narrow range. According to the statistics of Zhuochuang Information, the average price of powder this week was 7770 yuan/ton, 0.84% lower than last week.

Prediction: At this stage, the powder manufacturers are not active in production. The powder manufacturers have no plans to resume work or increase the load. It is difficult to increase the powder market supply, and the demand of downstream factories is not expected to improve significantly. The enthusiasm for raw material procurement is not good, and the market supply and demand remain weak. There is a high probability that the price of propylene monomer will stagnate and the cost of powder will still be supported. However, under the pressure of low price granular materials, there will also be some resistance to the upward movement of powder price. In general, factors such as supply and demand game, high cost support and low price pellet impact have accumulated. Zhuochuang Information expects that the market price of polypropylene powder will fluctuate in a narrow range next week, with a limited range.

PVC

The PVC powder market fluctuated this week, and the price center moved down slightly. The weekly average price of calcium carbide PVC powder was 6346 yuan/ton, down 34 yuan/ton from the previous week, with a drop of 0.53%. The weekly average price changed from rising to falling. Specifically, the market fell first and then fluctuated. The main factors affecting the market trend are on the one hand, the supply and demand side is still weak, the operating load rate at the supply side remains high, and Guangxi Huayi has increased its capacity for mass production, and the supply volume has increased.

Although the demand has also continued to recover, this week, most of the inventory is mainly digested, the purchasing enthusiasm is poor, and the industry inventory has increased. On the other hand, the macro perspective is mixed. At the beginning of the week, the market was worried that the Federal Reserve would raise interest rates more than expected, but the PMI data released by the Bureau of Statistics in the middle of the week was significantly better than expected. The expectation of economic recovery was strengthened, the commodity market was boosted, and the price shock rose slightly.

Forecast: The supply and demand side is still weak next week, and the supply side operating load rate may remain high, and the demand is expected to improve, but the terminal raw material inventory and product inventory are high, the purchasing enthusiasm is poor, and the PVC powder inventory is expected to remain high. Macroscopically, it is still optimistic in the long term, and there is a problem of slow realization of expectations in the short term. Next week, we will pay attention to the announcement of the policies of the two sessions. It is expected that the macro and fundamental aspects will still play a game, and the PVC powder market will maintain a range of fluctuations next week, with the price range of 6300-6500 yuan/ton in East China SG-5.

PE film

Today, the domestic PE winding film market price has been partially raised, and the reference quotation is 9200-11000 yuan/ton for manual winding film; The reference value of the machine winding film is 9400-11800 yuan/ton, and the firm offer remains a single one. The price of that day was 100 yuan/ton higher than that of the previous trading day, 100 yuan/ton higher than that of the same period last week, 50 yuan/ton lower than that of the same period last month, and 350 yuan/ton lower than that of the same period last year. The spot price of film material continued to rise, boosting the trading and psychology of the downstream market.

Prediction: On the whole, the winding film market is driven by the rising atmosphere of raw materials, and the film companies will make positive inquiries in the downstream when they ship at high prices. However, from the perspective of actual transaction, the temporary improvement is relatively limited, and the demand side has no obvious increase in market support, and the film price may mainly follow the narrow fluctuation of raw materials. Zhuochuang Information expects that the market intention of the winding film will be sorted out tomorrow, and the reference of the manual winding film is 9200-11000 yuan/ton; For machine winding film, please refer to 9400-11800 yuan/ton.