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

May 11, 2024

Leave a message

PE
Today, the HDPE market experienced some ups and downs, with a range of 20-100 yuan/ton. Today, linear futures opened low and operated at a low level, with little change in the trading atmosphere of the spot market. Except for some changes in the ex factory prices of wire drawing and film materials in PetroChina South China, most petrochemical ex factory prices remained stable. The merchant offered a small discount on some of the prices, while the prices of hollow and injection molded products were affected by tight supply, and some stable offers were made. Today, most end users mainly made basic purchases, and there were mostly negotiations on transactions. Today’s market transactions have slightly improved compared to yesterday.
Prediction: Today, the HDPE plant of Maoming Petrochemical will switch to TR210, and the old HDPE plant of Dushanzi Petrochemical will be shut down for maintenance today, with a planned maintenance period of 60 days. There will be no new start-up or production changes in other domestic HDPE plants, and there will be little change in domestic supply. With the arrival of summer, the demand for beer and beverages is gradually increasing, and tray factory orders are relatively increasing. Injection molded and hollow varieties are still available for trading today, but most of them require replenishment, and there is resistance to high priced sources. The actual transaction price is mostly determined through negotiation. It is expected that the prices of various low-pressure varieties will remain stable in the near future.

PVC powder
Today, the mainstream market price of PVC powder in China has decreased, and the transaction volume is average. The futures market has retreated to below 6000, with spot prices falling and spot trading showing an advantage. Downstream orders are relatively low, and market transaction activity is average. The mainstream self pickup transaction price of PVC powder SG-5 in the Hangzhou market today is 5640-5680 yuan/ton, a decrease of 35 yuan/ton from the previous trading day.
Prediction: Some early maintenance companies will gradually recover, with a slight increase in supply. Downstream procurement is seeking lower prices, and the decline has not yet met downstream procurement expectations; In the export market, there is a certain trading volume with low prices. Futures have seen a pullback, but there is limited room for further bearish decline in the short term. Downstream, with a certain amount of raw material inventory, maintain a wait-and-see attitude. Based on the analysis of driving factors, it is expected that the PVC powder market price will remain stable tomorrow. DOTP
Today, the price of DOTP in some regions has risen, with a range of 75-125 yuan/ton. From the perspective of supply and demand, the operating load rate of downstream industries such as PVC wires and cables continues to be at the previous level, with average performance on the demand side and temporary normal supply. There is not much change in the cost side. Some devices are planned to be shut down for maintenance next week, while the supply side is tightening in some areas. The DOTP market prices in East China and Guangdong have risen, and downstream users still have a wait-and-see attitude. Some of them just need to replenish their positions, and the overall trading atmosphere is stable. The mainstream intention transaction price in the East China DOTP market is 9850-10050 yuan/ton, an increase of 75 yuan/ton compared to the previous trading day.
Prediction: It is expected that the octanol market will maintain a stable trend tomorrow, with a stable performance on the cost side. Downstream industries such as PVC wires and cables have an average production capacity of 40-50%, with average acceptance of high priced raw materials. Short term digestion of raw material inventory or replenishment of demand is necessary. At present, the devices are operating normally, and some devices are planned to stop or operate at reduced loads next week. At that time, the supply in East and North China may be slightly reduced. It is expected that the market price may remain stable in the near future.