March 4 Plastics Market Outlook: Crude Swings Set the Tone for PE, PP, PVC, ABS and Recycled PET

Expectations that OPEC+ could deepen supply cuts briefly sparked a sharp intraday rally in international crude. Still, analysts viewed a Federal Reserve rate cut as less than clearly bullish, while the G7 finance ministers' meeting stopped short of announcing economy-boosting measures. As a result, WTI gave back part of its advance and Brent ended marginally lower. April WTI crude futures settled $0.43 higher at $47.18 per barrel, while May Brent crude futures settled $0.04 lower at $51.86 per barrel.

Plastic market sentiment improved yesterday. Linear futures continued to climb, lending support to spot prices, while higher ex-works quotations from Sinopec and PetroChina encouraged traders to quote up and move cargo. Actual deals were acceptable. Downstream converters, however, showed limited buying enthusiasm, keeping overall trading activity moderate. Market reference: Chongqing quotations followed the upward trend.

Chuanhua 7042 was quoted at 6,950 yuan/tonne; Suzhou prices were rangebound, with Yangba 2426H in short supply referenced at 8,050 yuan/tonne; Dongguan was narrowly mixed, with Guangzhou 7042 at 6,600 yuan/tonne excluding tax.

Today's forecast: the market is expected to consolidate slightly.

Polypropylene saw modest consolidation yesterday. PP futures opened higher and supported sentiment, while petrochemical inventories continued to fall, a positive signal for the outlook. Floor traders were reasonably active and focused on shipping material. Downstream buyers responded lukewarmly and were cautious about high-priced cargo, so actual trading was ordinary. Market reference: Zhengzhou prices moved up in some cases.

Luoyang Petrochemical T30S was quoted at 6,950-7,000 yuan/tonne; Changzhou saw small gains, with Daqing Refining & Chemical EPS30R at 7,650 yuan/tonne; Guangzhou prices rose, with Ningxia Baofeng L5E89 at 7,130 yuan/tonne.

Today's forecast: the market is expected to trade in a volatile range.

PVC market:

PVC prices were mostly stable yesterday, with transactions mainly small and low-priced and overall trading quiet. Ethylene-based producers cut actual selling prices again to stimulate shipments. With both inventory and cost pressure still in place, and downstream demand difficult to follow.

PVC remains under considerable pressure. Market reference: Hebei showed limited movement, with calcium carbide-based grade 5 material around 6,120-6,150 yuan/tonne delivered; Hangzhou changed little, with mainstream calcium carbide-based grade 5 spot material at 6,200-6,350 yuan/tonne ex-works pickup; Changzhou moved lower, with mainstream grade 5 calcium carbide-based prices near 6,160-6,350 yuan/tonne.

Today's forecast: sideways trading with stable quotations.

Yesterday's market posted mixed gains and losses, with moves of

50-350 yuan/tonne, and actual deals negotiable. The sharp rise in crude oil helped some standard grades stop falling and edge up, while certain high-end grades caught up on the downside. Inventory digestion remained the main theme, and discounted low-price cargo was also heard. Market reference: Shantou quotations moved higher, with Xinghui 118 at 7,920 yuan/tonne; Dongguan quotations fluctuated in a range, with Zhenjiang Chimei PG33 at 8,780 yuan/tonne.

Today's forecast: mainstream prices are expected to stabilize, with isolated swings.

ABS market:

ABS prices were mixed yesterday. Petrochemical plant inventories stayed high, keeping pressure on the market, while trader sentiment was fair and actual trading was moderate. Market reference: Dongguan quotations firmed, with Ningbo Formosa

15E1 at 10,350 yuan/tonne; Shantou quotations rose broadly, with Jilin Chemical 150 at 10,300 yuan/tonne.

Today's forecast: broadly stable with small moves, and a rebound from oversold levels in some regions.

Prices edged higher yesterday. International crude rebounded, the two polyester feedstocks firmed in a range, and cost support strengthened. Some bottle chip producers raised offers

by 50 yuan/tonne, and the market's negotiation center moved slightly higher, with the overall trend improving. Downstream plants restocked as needed and remained cautious, resulting in moderate trading. Market reference: East China water bottle material at 6,100-6,200; South China water bottle material at 6,100-6,250 ex-works pickup; North China water bottle material at 6,100-6,200 ex-works pickup.

Today's forecast: steady-to-firm performance.

PET scrap recycling

The PET scrap recycling market was weak and rangebound yesterday, with thin trading. The number of restarted plants was limited, operating rates stayed low, dirty bottle collection was difficult, and recycled bottle flake supply was tight. End-use demand was sluggish, chemical fiber mills shipped slowly, and their appetite for high-priced feedstock was low. Floor trading was quiet and actual deals were scarce. Market reference: East China white flakes for machine use in imitation large-scale chemical fiber grade

around 5,250 yuan/tonne.

Today's forecast: broadly stable with minor moves.

—This article is republished from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-354693.html