March 12 Plastics Market Outlook: Crude Slides 4%, Resin Grades Hold Narrow Ranges

After the World Health Organization (WHO) declared the novel coronavirus outbreak a global pandemic, stock-market losses widened, while plans from major oil producers escalated the newly started price war. International crude prices fell 4% on Wednesday, with the decline accelerating before the close. April WTI crude futures settled down $1.38, or 4.02%, at $32.98 per barrel; May Brent crude futures fell $1.43, or 3.84%, to settle at $35.79 per barrel.

In LLDPE, the market was little changed yesterday, with prices mostly stable and only minor moves. Linear futures fluctuated slightly higher, petrochemical ex-works prices were partly adjusted, and traders stayed on the sidelines, revising offers according to their own inventory. Downstream buying interest was fair, but actual deals remained less than ideal. Market reference: Chengdu was narrowly rangebound, with Maoming 2426H at 7,900-8,000 yuan/tonne; Dongguan was narrowly rangebound, with Guangzhou 7042 at 6,600-6,650 yuan/tonne excluding tax; Shunde was narrowly rangebound, with Daqing 5000S at 7,100 yuan/tonne excluding tax.

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

In PP, the market broadly stabilized yesterday, with some individual grades edging up. PP futures fluctuated at high levels, and petrochemical producers held prices firm, giving mild support; sellers generally raised offers to varying degrees, but downstream buying was cautious, wait-and-see sentiment was clear, and trading activity was average. Market reference: Xiamen rose in some areas, with Zhongjiang Petrochemical V30G at 7,300 yuan/tonne; Chongqing followed slightly higher, with Baofeng K8003 at 7,800 yuan/tonne; Lanzhou was broadly stable with minor moves, with Ningxia T30S at 7,000 yuan/tonne.

Today’s forecast: PP is expected to consolidate in a choppy range.

PVC market:

PVC prices moved slightly higher in choppy trade yesterday. To ease sales pressure, upstream producers offered preferential prices to selected customers. However, downstream recovery remained moderate, restarted plants operated at low rates, and some downstream buyers placed orders without taking delivery, leaving upstream producers with considerable inventory-shipping pressure. Market reference: Changzhou edged up, with Type 5 calcium-carbide-process mainstream prices at around 6,080-6,250 yuan/tonne; Guangzhou quotes were raised, with ordinary calcium-carbide material mainstream at 6,060-6,100 yuan/tonne; Shantou quotes were raised, with Type 5 mainstream at 6,080-6,150 yuan/tonne.

Today’s forecast: PVC is expected to be broadly stable with minor moves.

In the PS market, prices were narrowly weaker yesterday. Although crude oil and styrene had recently stopped falling and rebounded, buyers saw a wide spread against feedstock and showed limited restocking interest, with on-floor buying mainly for essential needs. Traders faced relatively high holding costs and made small price concessions. Market reference: Dongguan quotes were stable to lower, with Zhenjiang Chi Mei PG33 at 8,260 yuan/tonne excluding tax; Shantou quotes were stable with fluctuations, with Xinghui 118 at 7,700 yuan/tonne excluding tax.

Today’s forecast: this market is expected to be stable with declines.

ABS market:

ABS quotes mainly underwent narrow consolidation yesterday. Macro factors remained the main influence, feedstock trends were stable, market sentiment was acceptable, trading was relatively cautious, and end-use demand continued to recover. Market reference: Dongguan quotes fluctuated in a range, with Ningbo Taihua 15E1 at 10,100 yuan/tonne excluding tax; Shantou reference quotes rose, with Jilin Chemical 150 at 10,100 yuan/tonne excluding tax.

Today’s forecast: ABS is expected to remain in narrow-range consolidation.

PET prices rose narrowly yesterday. Short covering by investors and a strong rebound in international crude oil helped PTA and MEG recover, keeping cost support firm; some bottle-chip producers tested increases of 50-100 yuan/tonne, and the market’s negotiation center edged higher. Downstream buyers remained cautious, following with modest restocking, while overall trading was thin. Market reference: East China water-bottle material at 5,650-5,800 yuan/tonne; South China water-bottle material at 5,700-5,800 yuan/tonne on a self-pickup basis; North China water-bottle material at 5,650-5,800 yuan/tonne on a self-pickup basis.

Today’s forecast: PET prices are expected to fluctuate within a range.

Recycled PET

Recycled PET remained weak and stagnant yesterday. Bottle scrap collection was limited, washing plants operated at low rates, and recycled bottle-flake supply was tight. End-use demand was poor, chemical fiber plants faced significant production and sales pressure, and they mainly procured feedstock by pushing prices down; pessimism prevailed, and participants watched cautiously. Market reference: East China market’s imitation large-chemical white flakes for machine use were around 4,900 yuan/tonne.

Today’s forecast: recycled PET is expected to adjust within a narrow range.

—This article is republished from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-354761.html