January 14 Soft Packaging Resin Outlook: Oil Slips as PVC, ABS and PET Diverge

After Middle East tensions cooled, investors redirected attention to uninspiring seasonal demand, pushing international crude oil down by more than 1% on Monday. February WTI futures lost $0.96 to settle at $58.08 per barrel, while March Brent futures closed $0.78 lower at $64.2 per barrel.

Yesterday, the plastics market kept to a stable-to-soft course. Linear futures advanced, petrochemical producers held prices unchanged, market sentiment moved within a narrow band, and traders largely stayed on the sidelines while shipping according to market conditions. Downstream demand has yet to show a clear pickup, leaving the market without a fundamental driver for upside. Price references: Shunde adjusted selectively, with Daqing 5000S at 7,550-7,600 yuan/tonne tax-excluded; Suzhou quotes were broadly flat with small moves, Yangzi 7042 at 7,450 yuan/tonne; Chongqing quotes were also broadly stable with minor changes, Shenhua 2426H at 7,900-7,950 yuan/tonne.

Today’s forecast: the market is likely to trade in a consolidating pattern.

Yesterday’s market held a consolidation pattern. With the news backdrop still bearish and effective transactions slow to follow through, unease remained pronounced, most traders watched the market before moving cargoes, and real deals were weak. Downstream plants had limited capacity to absorb materials, and end-user demand continued to disappoint, remaining the main drag on market development. Price references: Shunde prices declined, Zhanjiang V30G at 7,500 yuan/tonne; Xi’an weakness persisted, Yaneng Chemical S1003 at 7,230 yuan/tonne ex-works; Nanjing moved lower, Yangzi J340 at 8,500 yuan/tonne.

Today’s forecast: the market is expected to stay in a weak consolidation today.

PVC market:

Some prices were cut yesterday. Downstream buyers continued to resist prevailing levels and showed no stocking interest, leaving PVC producers’ forward pre-sales below expectations. Counteroffers from the market and end users were limited, with actual deals negotiated case by case. Price references: Guangzhou quotes moved down, with mainstream ordinary calcium carbide material at 6,850-6,900 yuan/tonne; Changzhou narrowed lower, with mainstream 5-type calcium carbide material at 6,650-6,850 yuan/tonne; Hangzhou ran weakly, with 5-type calcium carbide material in the 6,630-6,830 range.

Today’s forecast: most quotes are expected to hold steady today, with a few edging lower.

The market was broadly stable yesterday. Lacking clear news direction and with small and medium downstream plants gradually closing for holidays, negotiation activity was light. Traders showed little interest in restocking, and discussions remained quiet. Price references: Beijing-Tianjin-Hebei quotes adjusted selectively, 500NT at 9,050 yuan/tonne; Dongguan quotes consolidated within a stable band, Guang 525 at 8,280 yuan/tonne.

Today’s forecast: the market is expected to make narrow adjustments today.

ABS market:

ABS prices moved within a narrow range yesterday. With the Lunar New Year approaching, traders mostly kept offers steady, downstream factories bought at a moderate pace, and actual transactions included discounts. Price references: Yuyao was range-bound and cautious, 15A1 at 12,400 yuan/tonne; Dongguan consolidated narrowly, Taiwan Formosa Chemicals 15A1 at 11,350 yuan/tonne.

Today’s forecast: prices are expected to be stable to slightly softer today.

Yesterday’s market was weak and deadlocked. Both polyester feedstocks eased slightly, weakening cost support. The industry, however, remained in loss-making operation, and participants stuck to price-holding. Downstream demand was cautious, factory stocking was close to finishing, and market trading was sluggish. Price references: East China water bottle material around 6,500-6,600; South China water bottle material around 6,550-6,650 ex-works; North China water bottle material around 6,500-6,600 ex-works.

Today’s forecast: narrow-range fluctuations are expected today, with limited volatility.

PET waste recycling

The market was mostly stable yesterday. Winter made raw material collection difficult, washing plants gradually went on holiday, and recycled bottle flake supply tightened. As the year-end approached, chemical fiber plants also began their holidays this week, market operating rates fell, end-user demand weakened, market participants stayed cautious, and trading was quiet. Price reference: East China imitation virgin-chip grade white flakes for spinning around 5,250 yuan/tonne, tax-excluded.

Today’s forecast: the market is expected to be mainly range-bound today.

Source: China Packaging Network (pack.cn); original link: http://news.pack.cn/show-354549.html