December 31 Plastics Market Outlook: Crude Oil Hits Three-Month High as Resin Prices Stay Rangebound

International crude oil futures advanced to a three-month peak on Monday, driven by hopes for a China-US trade agreement and encouraging industrial data, as traders watched the Middle East following US airstrikes on Iraq and Syria.

February WTI crude settled at USD 61.68 per barrel, down USD 0.04, while February Brent closed at USD 68.47 per barrel, up USD 0.31.

The plastics market was quiet yesterday, with prices mostly consolidating. Linear futures opened lower before rising; early-week sentiment stayed cautious, and traders quoted and sold according to market conditions. Downstream factories continued need-based buying, actual deals were moderate, and transactions were negotiated.

Market reference: Xiamen prices were flat, with Shenhua 2426H at CNY 8,030/tonne; Hangzhou was broadly stable with small moves, Zhenhai 7042 at CNY 7,400/tonne; Tianjin prices consolidated, Daqing 2426H at CNY 8,150/tonne.

Today's forecast: prices are expected to be largely stable with minor adjustments.

Yesterday trading was sluggish, with prices adjusting in some regions. Without clear positive signals, most traders stayed cautious and focused on flexible sales and margin concessions to reduce inventory. Downstream purchasing interest was ordinary, with no major improvement.

Market reference: Hangzhou offers consolidated, Shaoxing T30S pre-sale at CNY 7,850/tonne; Xiamen was steady-to-volatile, Fujian Refining & Petrochemical 1080K at CNY 7,850/tonne; Hebei moved in a narrow band, Dushanzi K8003 at CNY 8,800/tonne.

Today's forecast: prices are expected to adjust within a narrow range.

PVC market:

PVC trended lower from a stable start yesterday. Market arrivals rose, and producers showed a clearer willingness to cut prices due to weak forward pre-sales. Traders said transactions still showed no obvious recovery; sentiment was calm, and most followed the market.

Market reference: Hebei offers eased slightly, calcium carbide-type 5 material at CNY 6,280-6,320/tonne delivered, tax excluded; Guangzhou quotes were sharply reduced, with mainstream ordinary calcium carbide material at CNY 7,230-7,260/tonne; Hangzhou prices were lowered, with type 5 calcium carbide material at CNY 6,850-7,050.

Today's forecast: the market is expected to remain weak.

Yesterday the market was mostly stable, with minor consolidation in certain areas. External trends were slightly better, but downstream buying remained need-based, leaving overall trading lacklustre. Traders saw a flat outlook and took limited action.

Market reference: Dongguan prices consolidated slightly, SK 118 at CNY 9,500/tonne; Ningbo quotes moved little, Saibaolong 525 at CNY 9,150-9,200/tonne; Yuyao quotes were generally steady, GPS-525 at CNY 9,150/tonne.

Today's forecast: the market is expected to hold steady, with some slight declines.

ABS market:

ABS consolidated weakly yesterday, with quotes for some grades fluctuating. Downstream users mainly bought as needed, so market trading changed little. Traders remained cautious and mostly took short-term positions.

Market reference: some Dongguan offers fell, Ning 15A1 at CNY 11,600/tonne; Ningbo quotes were basically stable, 121H Yongxing at CNY 12,450/tonne; Yuyao was broadly steady with mixed local moves, 757K at CNY 12,900/tonne.

Today's forecast: the market is expected to continue weak consolidation.

Yesterday the price centre was range-bound. Both polyester feedstocks rose modestly, providing sound cost support; sentiment was steady. Most bottle chip plants kept quotes flat, with a few testing higher levels. Trader offers were temporarily stable, downstream buying failed to follow, and market activity was quiet.

Market reference: East China water bottle material at CNY 6,500-6,650; South China water bottle material at CNY 6,500-6,600 ex-works pickup; North China water bottle material at CNY 6,500-6,650 ex-works pickup.

Today's forecast: prices are expected to change little.

PET waste recycling

Yesterday the market was mainly in wait-and-see consolidation. Winter bottle scrap collection was difficult, recycled bottle flake supply was tight, and washing plants showed ordinary willingness to ship. Traders operated cautiously; end-user demand was sluggish, chemical fibre producers saw average production and sales, and flexible, need-based raw material buying remained the main approach, with trading sentiment deadlocked.

Market reference: East China white flake for spinning, imitation staple grade, at around CNY 5,250/tonne, tax excluded.

Today's forecast: lacking substantive positive factors, the market is expected to consolidate within a narrow range.

——This article is reprinted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-354409.html