Plastics: Today’s Market Summary

Sep 16, 2022

Leave a message

PP granules

Domestic polypropylene prices continued to rise this week. As of this Thursday, the average price of East China wire drawing was 8182.5 yuan/ton, up 192.5 yuan/ton from last week's average price, or 2.41%, an increase compared with the previous week. The price difference between wire drawing regions is not prominent, and the price difference between wire drawing and low melting copolymerization is narrowed for varieties. Crude oil prices rose in shock this week. Polypropylene futures moved in shock after opening high, boosting the market atmosphere. In addition, at the beginning of the week, petrochemical production enterprises raised prices more often, and cost support was also strengthened. Traders were in a good mood, and prices were actively rising, with a low willingness to yield profits. However, the improvement of downstream actual demand after the festival is limited. The factory mainly consumes the goods in the early stage. The enthusiasm for purchasing at high prices is low, which hinders the market from going up. As the weekend approaches, the market transaction will weaken significantly.

Forecast: The focus of domestic polypropylene market will rise this week, and the market range is expected to be volatile next week. Taking East China wire drawing as an example, the price range is expected to be 8100-8300 yuan/ton. It is expected that crude oil will have no obvious trend trend next week, and the guidance on polypropylene cost is limited. On the supply side, the supply is expected to be slightly reduced next week due to the large number of new maintenance devices this week and their long duration. On the demand side, the downstream commencement level is stable in the near future, and the demand in the later period is expected to be still dominated by the stable release of rigid demand. To sum up, the market fundamentals are expected to change relatively limited next week, and the market is temporarily short of clear guidance and is expected to be volatile.

PVC Material

The PVC market fell back after rising this week, and the center of gravity of weekly average price moved up slightly compared with last week. The average weekly price of calcium carbide PVC this week was 6594 yuan/ton, up 40 yuan/ton from last week, or 0.61%, a slight increase. PVC prices rose first this week, mainly because the macro atmosphere improved, and PVC rose with the black sector; However, the spot price has not kept up with the rise and the basis has narrowed, mainly because the supply side has gradually recovered, the demand performance is average, the social inventory remains high, the spot price is still under pressure, and the futures and spot prices continue to rise without support, which then fluctuates and falls back.

Forecast: the supply side, the starting load of PVC industry has increased compared with the early stage; On the demand side, although the start of some downstream projects improved on a month on month basis, the improvement was limited, and orders for exports were not well received; The short-term PVC fundamentals have not changed much, the social inventory remains high, and the price rise is not driven, but there is cost support at the bottom. It is expected that the PVC price range will continue to fluctuate next week, and the SG-5 price range in East China may be 6300-6600 yuan/ton.