Today’s Market Summary And Tomorrow’s Outlook(April 6th,2023)

Apr 10, 2023

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PP particles

This week, the domestic polypropylene market rose and fell, with the price center shifting upwards. As of this Thursday, the weekly average price of East China wire drawing is 7687.5 yuan/ton, an increase of 39.5 yuan/ton or 0.52% compared to the previous week, and it has turned from a decline to an increase compared to the previous week. The price difference in the wire drawing area is not prominent, and in terms of varieties, the price difference between wire drawing and low melting copolymerization has significantly expanded.

Recently, orders for automotive and home appliance accessories have slightly rebounded, which has driven the demand for co polymer injection molding to some extent. At the beginning of the week, the fluctuation and rise of PP futures boosted the trading sentiment in the spot market, coupled with the general increase in new prices of petrochemical companies at the beginning of the month to support the cost of goods supply, and the market quotes were gradually adjusted; However, the overall follow-up efforts downstream are not ideal, and the factory chooses to purchase in moderation at a lower price. Subsequently, with the futures market fluctuating and falling, the spot market reported a weak correction, and the wait-and-see atmosphere on the market increased, resulting in light trading.

Forecast: The domestic polypropylene market is expected to rebound after rising this week, and the market is expected to be weak and tidy up next week. Taking East China as an example, it is expected that the operating range of wire drawing prices is between 7600 and 7750 yuan/ton, and the operating range of low melting copolymerization prices is between 7850 and 7950 yuan/ton. Next week, crude oil is expected to maintain high volatility, while polypropylene’s high cost support remains relatively stable. Fundamentally speaking, the supply side is expected to add more maintenance devices and the supply is expected to decrease slightly. On the demand side, there is currently no improvement in downstream orders, and there is a strong sense of caution in the short term. It is expected that the pace of just needed procurement in the market will continue, and the weak demand in the short term will become the main resistance to the upward trend of the market. Based on this, it is expected that the market will be mainly weak and organized next week.

PE

This week, the domestic polyethylene market rose first and then fell. At the beginning of the month, petrochemical companies showed strong willingness to increase prices. Most petrochemical companies increased their factory prices, coupled with a rebound in crude oil prices from a low level, which significantly boosted the trading confidence of polyethylene market participants. Holders followed the upward trend and shipped out. However, the follow-up of terminal demand is slow, and factories have limited new orders. Receiving goods is mainly based on hard demand, making it difficult to form effective support for the market. Spot prices have risen and then fallen. The current mainstream linear price ranges from 8150 to 8530 yuan/ton, with increases ranging from 50 to 100 yuan/ton; High pressure mainstream prices range from 8600 to 9000 yuan/ton, with most prices rising and fluctuations ranging from 20 to 50 yuan/ton; The prices of various low-pressure varieties have mostly increased slightly, with fluctuations ranging from 40 to 100 yuan/ton.

Forecast: Zhuochuang Information predicts that the LLDPE market will experience weak volatility next week, with mainstream prices expected to be between 8150-8450 yuan/ton. Oil market prices fluctuate at high levels, with slight support from the market for costs. In terms of supply, some Middle East and South Asian goods have arrived at ports, and the supply of imported goods has increased; The planned maintenance loss of domestic PE next week is 58900 tons, a decrease of 14800 tons compared to the previous month. Among them, the loss of LLDPE is 29500 tons, and the supply is expected to slightly increase. In terms of demand, the reduction of new orders for plastic film has weakened the support for prices, and other fields have started smoothly, just in need of restocking. In summary, the supply and demand game in the LLDPE market next week will be dominated by weak fluctuations.

Regenerated PC

The quotation for the recycled PC market has weakened in a narrow range, with Shandong, Hebei, Jiangsu, and Zhejiang markets all reducing by 200-500 yuan/ton. At present, the mentality of regeneration manufacturers is biased towards emptiness, and there is a clear reluctance to sell at low prices supported by cost. Downstream manufacturers have made inquiries and replenished their positions, resulting in a shortage of actual orders and transactions on the market, resulting in poor demand performance. Offer reference: East China lampshade white transparent crushed material is 10800-11000 yuan/ton, a decrease of 200 yuan/ton from last week’s average price and 5450 yuan/ton from the same month last year’s average price.

Prediction: The recycled PC market is weak and declining, with manufacturers having a bearish mentality, weak willingness to ship at low prices, and weak trading enthusiasm. Zhuo Chuang Information predicts that the recycled PC market is in a sluggish state of consolidation and operation, and it is expected that the white transparent lampshade crushing material in the East China market will reference 10800 to 11000 yuan/ton.