1. Overall overview:
[External disk observation] As of 15:00 on June 16, the China Plastics Price Index fell 2.65 to 1024.29 points, and the China Plastics Spot Index fell 0.73 points to 1211.37 points.
Crude oil fell sharply, and plastic futures were affected by it, opening lower and falling. There are mostly wait-and-see people in the PE market.
The sharp drop in crude oil has put pressure on the PP market mentality, and merchants have a wait-and-see mentality. The offer is still strong, but the inquiry is still light and the transaction is difficult.
The PS market¡¯s offer was stable and declined slightly, the demand was flat, and buyers were not interested in purchasing.
The ABS market offer partly fell 5-10 US dollars / ton. Affected by the decline in oil prices, the market is basically in a state of no market, and transactions are scarce. The supply of goods is normal, and the downstream demand is weak.
2. Market overview:
A South Korean supplier¡¯s price for PE cargo LLDPE grade materials in July was US$1550/ton, and HDPE film materials were quoted at US$1530/ton, spot, CFR China¡¯s main port, and July shipping schedule.
A major supplier in the Middle East made a June cargo offer: PP homopolymer offer at US$1540/ton, a total of US$1560/ton, transparent US$1750/ton, spot, CFR China main port, shipment at the end of June.
Yangzi BASF's EVA ex-factory price is stable: V5110J reported 21,000 yuan/ton, 6110M reported 22,000 yuan/ton, and the device output was 5110J.
Iranian low-pressure membrane 5101 is offered at US$1325/ton, L/C 60 days, CFR Shanghai, and July shipping schedule.
Basel drawing HP456J is offered at US$1,520/ton, spot, CFR Qingdao, shipment in June.
3. Trend outlook:
The PE market was both ups and downs. As of mid-June, some agricultural film manufacturers had gradually begun to reserve for the upcoming production season, and the purchasing capacity of factories would also be improved. The European debt crisis deepened, and crude oil fell below 95 US dollars. If the decline continues to expand, petrochemicals and the market will be under pressure again. It is difficult to relax the tightening monetary policy in the third quarter. The strength of the market rebound is questionable. The plastics market has reached or is close to the bottom, and the downward pressure is no longer large. The rebound in the market outlook depends on the changes in the central bank's regulatory policies at the end of June. It is expected that the market will be dominated by shocks, but the magnitude of the rebound remains to be seen.
The central bank raised the reserve requirement ratio for the sixth time this year. It is urgent to tighten monetary policy, while downstream small and medium-sized enterprises have become more difficult to survive and profits have shrunk. The Eurozone debt crisis is constantly affecting the changes in the U.S. dollar and the Euro, making commodities fluctuate. There are uncertainties in the development of the world economy. In response to the plastics market, businesses must maintain patience and wait for the real dawn of the market. It is expected that the short-term PP market will remain deadlocked, and merchants will pay attention to changes in the petrochemical and RMB markets in a timely manner.
The ABS/PS market quotes fell, crude oil and futures declined, but although the market had a certain negative impact, downstream demand and transactions were sluggish, and it was too difficult for the market to improve. It is expected that the short-term market will continue to decline if the market is positively supported.
