Plastics: Summary of this week’s market situation and future prospects

Dec 29, 2023

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PE

The domestic polyethylene market prices have slightly increased this week. During the week, unplanned shutdowns of petrochemical plants such as Qilu Petrochemical, Zhongtian Hechuang, and Baolai Liande Basel increased the overall loss of petrochemical equipment maintenance, and the expected reduction in supply of goods represented by LDPE varieties supported the mentality of market operators, with a focus on selling at high prices. However, terminal demand continues to be weak, and factory procurement enthusiasm is not high, with a focus on on-demand purchases. The support for demand is relatively small, and market price increases are limited. The current mainstream linear price ranges from 8160 to 8450 yuan/ton, with an increase ranging from 50 to 80 yuan/ton; The mainstream price of high-pressure ranges from 8550 to 9250 yuan/ton, with some prices rising and fluctuations ranging from 50 to 150 yuan/ton; The prices of various low-pressure varieties have mostly risen, with fluctuations ranging from 10-200 yuan/ton.

Prediction: Zhuochuang Information predicts that the domestic PE market will mainly digest recent increases next week, with mainstream

LLDPE prices ranging from 8200 to 8500 yuan/ton. The strong oscillation of crude oil provides support on the cost side. Fundamentally speaking, the planned maintenance loss of PE next week is 71400 tons, an increase of 12500 tons compared to the previous week. Among them, the loss of LLDPE is 25700 tons. Although there are many domestic LLDPE maintenance devices next week, Haiguo Longyou, Shenyang Chemical and other devices are in a long-term shutdown state. The supply of LLDPE general materials is relatively sufficient, and the supply elasticity is small. The short-term supply reduction has limited price support; On the demand side, orders for plastic film continue to follow up, while orders from other industries have insufficient momentum. Considering the approaching end of the year and recent price fluctuations, the market’s acceptance of high prices is limited. It is expected that the domestic LLDPE market will mainly digest the increase next week.

PET

This week, the price of polyester bottle chips has risen narrowly. As of December 28th, the focus of negotiations for polyester bottle chips in East China is between 6900-6960 yuan/ton, with an average price of 6909 yuan/ton this week, an increase of 1.07% compared to the previous period. The strong oscillation of crude oil during the week has driven the continued strong trend of polyester raw materials, and the cost driving force on polyester bottle chips remains strong. However, prices on the supply side are strong, while there is a lack of willingness to accept high prices on the demand side. The trading atmosphere in the polyester bottle chip market is deadlocked, and transactions in the spot market are sporadic. The weak supply-demand pattern has dragged down the price of bottle chips and the rise of raw materials. The price of polyester bottle chips remained stagnant and consolidated during the week, with a slight increase in the weekly average price.

Prediction: In the short term, the cost side will continue to have a strong pattern, but the fundamental pressure on polyester bottle chips is difficult to improve. It is estimated that the price of polyester bottle chips may slightly increase next week, and the negotiation reference is 6900-7100 yuan/ton.