Plastics: Today’s Market Summary and Tomorrow’s Outlook

Oct 18, 2023

Leave a message

Market announcement

PP particles

The domestic PP market prices are improving today. The consolidation after the upward trend of futures volatility has boosted the sentiment in the spot market to a certain extent. Fundamentally speaking, in terms of cost, some regions have seen an increase in petrochemical factory prices, resulting in increased support for supply costs; On the demand side, downstream terminals and traders have shown some willingness to accept orders, and the market’s actual transactions have improved, further promoting the upward trend of prices. However, on the supply side, the impact of low prices for new products and the slow decline in upstream inventory continue to drag down prices and suppress market upside. Today, the mainstream prices for wire drawing in North China are between 7500-7600 yuan/ton, in East China they are between 7550-7650 yuan/ton, and in South China they are between 7480-7740 yuan/ton.

Forecast: Futures will fluctuate and consolidate after rising today, with spot prices slightly rising. Looking at the future market, it is expected that PP prices may continue to operate slightly warmer. On the cost side, high propane levels and rising crude oil have supported the cost side. On the demand side, downstream raw material inventory is at a low level, demand has been released, and short-term market transactions have improved; On the supply side, there has been no recent release of new production capacity, but there has been a significant reduction in planned maintenance, and there is still pressure on the supply side; At the same time, considering that downstream orders are mainly sourced from low-priced goods, it may affect the upside potential. Therefore, it is expected that the short-term PP market may move towards a narrow range of warming.

PS

Today, the domestic PS market is relatively strong and upward. The reference price for ordinary transparent benzene in East China is 9200-9450 yuan/ton, while the reference price for ordinary modified benzene in East China is 9850-9950 yuan/ton. The strong upward trend of raw material styrene has boosted the cost side of PS, while the supply of ordinary materials is tight. Holders have a high willingness to push up prices, and the focus has shifted upwards; There has been a slight pullback in the high-end materials section, and buyers are purchasing according to demand, resulting in a stalemate in delivery.

Prediction: Raw materials will once again strengthen, pay attention to their sustained performance, and support PS cost end storage; The supply of spot goods is gradually tight, and holders are still mainly willing to hold up prices. In the short term, the domestic PS market is relatively strong in consolidation.