March 24 Plastics Market Forecast: Crude Diverges, Flexible Packaging Resins Feel Pressure

Global travel restrictions introduced to contain the COVID-19 pandemic continued to weigh heavily on fuel demand. On Monday, U.S. crude oil futures advanced, while U.S. gasoline plunged more than 30% to a record low. The May WTI U.S. crude contract settled at $23.36 per barrel, up $0.73, or 3.22%; May Brent settled at $27.03 per barrel, up $0.05, or 0.26%.

In the previous session, the market was soft and most offers moved lower. LLDPE futures opened lower and fluctuated. Traders were bearish and cut quotations broadly, with only a few tight-supply grades edging up; overall trading was poor. Downstream product manufacturers bought cautiously, limited their market entry, and maintained a strong wait-and-see stance. Reference prices: Shunde loosened downward, with Guangzhou 7042 at RMB 6,350-6,400/tonne excluding tax; Xinjiang quotations softened, with Dushanzi 5502 at RMB 7,450/tonne; Chengdu was weak, with Sichuan Chemical 7042 at RMB 6,450-6,500/tonne.

Today's forecast: the market is expected to fluctuate weakly.

In the previous session, some prices were lowered. Polypropylene futures opened lower and fluctuated, while some petrochemical producers cut ex-factory prices, further weakening cost support. Traders stayed cautious, and some offers followed the decline. Downstream buying remained just-in-time, with no clear improvement in transactions. Reference prices: Chongqing quotations fell, with Ningmei 1102K at RMB 6,600/tonne; Wuhan was weak-to-lower, with Dushanzi K8003 at RMB 7,650-7,700/tonne; Hangzhou consolidated at low levels, with Fude T30S at RMB 6,900/tonne.

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

PVC market:

In the previous session, prices loosened and most moved down. Downstream users continued just-in-time procurement, overall trading was poor, and the market mainly sold on a price-point basis. Reference prices: in Changzhou, mainstream type 5 calcium carbide process material was around RMB 5,850-6,000/tonne; in Hangzhou, the market continued lower, with mainstream calcium carbide process type 5 spot quoted at RMB 5,850-6,000/tonne ex-works pickup.

Today's forecast: stable with some adjustments.

In the previous session, the styrene-linked PS market was weak but stabilizing, with local declines. A sharp drop in upstream styrene strengthened risk-averse and wait-and-see sentiment among buyers. Traders mostly watched the market, and actual deals were scarce. Reference prices: Shantou quotations generally fell, with Xinghui 118 at RMB 7,050/tonne; Dongguan reference prices slid, with Zhenjiang Chi Mei PG33 at RMB 8,160/tonne.

Today's forecast: mainly weak and stable.

ABS market:

In the previous session, the market ran weak, with prices continuing to fall. Sentiment was pessimistic. Downstream buying followed just-in-time needs, and traders actively offered discounts to move cargo, with actual deals negotiable. Reference prices: Shantou trading was quiet, with Jilin Chemical 150 at RMB 9,600/tonne and Daqing 750A at RMB 9,600/tonne; Dongguan cut prices to move volume, with Ningbo Formosa 15E1 at RMB 9,440/tonne.

Today's forecast: the market is expected to be choppy and weak.

In the previous session, the market was narrowly weak. Both polyester raw materials retreated, keeping the market bearish and weakening cost support. Some bottle chip producers lowered quotations by RMB 50-100/tonne, dragging the negotiation center lower. Downstream inquiries were sporadic, mainly just-in-time replenishment, and overall trading was lackluster. Reference prices: East China water bottle material at RMB 5,250-5,450; South China water bottle material at RMB 5,300-5,450 ex-works pickup; North China water bottle material at RMB 5,300-5,400 ex-works pickup.

Today's forecast: prices are expected to be weak and range-bound.

PET recycled material

In the previous session, the market was weak, with prices falling in some areas. Bottle recovery remained slow, washing plants were reluctant to sell at low prices, and recycled bottle flake supply was tight. Downstream recycled chemical fiber production and sales faced pressure, with slow shipments. Chemical fiber plants resisted high-priced feedstock and mainly purchased at reduced prices, leaving on-site trading light. Reference prices: East China imitation large-scale chemical fiber machine-grade white flakes at RMB 4,500-4,600/tonne.

Today's forecast: with both supply and demand light, the market may run in a wait-and-see mode.

Source: China Packaging Network (pack.cn); original link: http://news.pack.cn/show-354912.html