March 3 Plastics Market Outlook: Crude Rebounds as Resin Prices Stay Mixed

Supported by OPEC production cuts and central bank measures, international crude oil futures climbed more than 4% on Monday, recovering from an intraday slide to multi-year lows. April WTI settled $1.99 higher, or up 4.5%, at $46.75 per barrel. May Brent gained $2.23, also 4.5%, to settle at $51.9 per barrel.

In plastics spot trading, prices were mostly stable yesterday with only minor adjustments. Linear futures moved higher, but traders stayed cautious at the start of the month, adjusting offers mainly according to supply and demand, while actual deal activity remained weak. Downstream follow-through was insufficient, keeping overall trading quiet. Market reference: quotations in Qilu Chemical City moved lower.

Qilu 2100TN00 was quoted at CNY 7,240/tonne; the Shunde market softened slightly, with Guangzhou 7042 at CNY 6,600-6,650/tonne excluding tax; Shanghai market quotations were consolidated, with Shanghai Petrochemical Q281 at CNY 7,850-7,900/tonne.

Today's forecast: the market is unlikely to see a clear improvement in the near term.

The polypropylene market was steady with some movement yesterday. PP futures rose, slightly improving market sentiment; petrochemical ex-works prices were largely stable with small changes. Traders showed limited operation willingness, turned more cautious, and mostly waited on the sidelines. As downstream factories and logistics gradually resumed work, low-priced transactions improved somewhat. Market reference: the Hebei market fluctuated narrowly, Hohhot Petrochemical

T30S was quoted at CNY 7,000/tonne; Changzhou market offers were consolidated, with Yanchang K8003 at CNY 7,650/tonne; Beijing market edged down, with Yanshan K7726H at CNY 8,800/tonne.

Today's forecast: prices are expected to fluctuate within a small range.

PVC market:

PVC prices moved in a narrow band yesterday, with traders' selling prices steady to weaker. Operating rates at upstream producers rose slightly, but plant inventories remained high and supply stayed ample. Downstream operations recovered slowly; logistics and workers' return improved, lifting market participant activity. However, a broader demand expansion still needs time. Market reference: Hebei market sentiment was ordinary, with participants following the market, calcium carbide-based

grade 5 material was referenced at around CNY 6,120-6,150/tonne delivered; Guangzhou quotations were stable, with mainstream ordinary calcium carbide material at CNY 6,200-6,220/tonne; Zhengzhou offers were adjusted narrowly, with tax-inclusive calcium carbide-based grade 5 mainstream reference at around CNY 6,100-6,150/tonne.

Today's forecast: the market is expected to run steadily.

Some plastic grades continued to edge down yesterday. Inventory pressure was relatively high, and poor shipments pushed the bargaining center for actual deals slightly lower; traders mainly moved cargo at low levels, while trading sentiment was sluggish. Market reference: Shantou quotations fell sharply, Xinghui

118 was quoted at CNY 7,880/tonne; Dongguan reference offers moved down, with Zhenjiang Chimei PG33 at CNY 8,780/tonne.

Today's forecast: the market is expected to stabilize on a weak note.

ABS market:

ABS quotations declined yesterday. Traders were pessimistic about the outlook and actively shipped at discounts, with actual deals negotiable; end users continued efforts to resume work; petrochemical plant inventories stayed high. Market reference: Dongguan quotations fell across the board, Ningbo Formosa

15E1 was quoted at CNY 9,980/tonne; Shantou quotations dropped sharply, with Jilin Chemical 150 at CNY 9,980/tonne.

Today's forecast: some grades are expected to soften.

The bottle chip market was range-bound yesterday. Crude oil fell for consecutive sessions, the two polyester raw materials trended weak, cost support was moderate, and mainstream bottle chip producers held quotations steady for now. Trader sentiment was ordinary, with most following the market. Downstream demand was cautious; players watched from the sidelines and mainly bought on dips. Market reference: East China water bottle material prices were referenced at

6,050-6,150; South China water bottle material prices were referenced at 6,100-6,200 ex-works pickup; North China water bottle material prices were referenced at 6,100-6,200 ex-works pickup.

Today's forecast: the market is expected to fluctuate at low levels, with limited price movement.

PET scrap recycling

The recycling market ran quietly yesterday. Pressed by low virgin material prices, industry players had a poor mindset; on-site work resumption was slow, market uncertainty remained high, and future dirty bottle collection volumes are unlikely to increase notably. More downstream recycled chemical fiber players returned to the market, but labor and other unfavorable factors kept operating rates low and trading weak. Market reference: East China white flakes for machine use at imitation large-scale chemical fiber grade were at

around CNY 5,250/tonne.

Today's forecast: the market may consolidate within a narrow range.

Source: China Packaging Network (pack.cn), original link: http://news.pack.cn/show-354678.html