March 9 Plastics Market Forecast: Resin Grade Outlook After Crude Oil Selloff

Friday brought a steep selloff in international crude oil futures, marking the worst showing since the financial crisis, as the world's two largest oil producers could not reach agreement on whether to cut global supply.

The April WTI crude contract fell $4.62, or 10.1%, to settle at $41.28. That was the largest single-day drop since November 2014 and the lowest close since August 2016. May Brent crude lost $4.72, or 9.4%, settling at $45.27 per barrel, the biggest single-day percentage fall since December 2008.

In plastics, last Friday's offers were broadly stable with only limited changes. Linear futures trended downward, spot trading was weak, and traders adjusted quotations according to resource supply and demand, with some making small concessions to close deals. Downstream factories had limited absorption capacity, demand was not ideal, and the market lacked enough momentum to improve. Market reference: Suzhou prices moved in a narrow range, and Yangzi-BASF

2426H was quoted at 8,050-8,100 yuan/tonne due to tight supply; Dongguan prices moved higher, with Guangzhou 7042 at 6,650-6,700 yuan/tonne excluding tax; Hangzhou offers probed upward, with Lanzhou Petrochemical 5000S at 7,500 yuan/tonne.

Today's forecast: minor fluctuations are expected in the market.

In polypropylene, last Friday saw modest consolidation. PP futures moved lower, making traders cautious, and deals were mainly small orders or need-based purchases. Downstream inquiry activity was ordinary, buying continued on a need-to-buy basis, overall trading sentiment was weak, and any upward move still faces a test. Market reference: Hebei prices rose, and North China Petrochemical

T30S was quoted at 7,200 yuan/tonne; Chengdu adjusted slightly, with China Coal V30G at 7,100 yuan/tonne; some Nanjing prices moved higher, with Yangzi K8003 at 8,350 yuan/tonne.

Today's forecast: the market may continue its consolidation pattern.

PVC market:

PVC continued to consolidate at a steady level last Friday, with transactions mainly at low prices. This week, market circulation improved, upstream producer inventories were flat or lower than last week as the buildup ended, but overall shipment pressure remained considerable; downstream operating rates improved, yet end-user demand was weak. Market reference: Zhengzhou offers edged up, with calcium carbide process

grade 5 material mainly quoted at around 5,700-5,800 yuan/tonne excluding tax; Changzhou saw few changes, with mainstream calcium carbide process grade 5 prices at around 6,150-6,320 yuan/tonne; Hebei changed little, with calcium carbide process grade 5 material referenced at around 6,120-6,150 yuan/tonne delivered.

Today's forecast: the market is expected to move sideways, with quotations broadly stable.

Last Friday, the market consolidated at a steady level. External news was unsettled, wait-and-see sentiment was pronounced, and traders negotiated actual deals based on inventory. Market reference: Shantou quotations were steady with minor adjustments, and Xinghui

118 was quoted at 7,880 yuan/tonne; Dongguan quotations trended lower within a steady range, with Zhenjiang Chi Mei PG33 at 8,740 yuan/tonne.

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

ABS market:

ABS edged up at a steady level last Friday, with a few grades declining. Stronger cost support led traders to raise offers. End-user purchasing activity improved, and traders generally reported good shipments. Market reference: Dongguan quotations fluctuated within a range, and Ningbo Formosa

15E1 was quoted at 10,220 yuan/tonne; Shantou quotations were mixed, with Jilin Chemical 150 rising 10 yuan to 10,230 yuan/tonne.

Today's forecast: the market is expected to consolidate in a narrow range.

In bottle chip/PET, last Friday's market was slightly weak within a narrow range. Both polyester raw materials trended softly, cost-side support was insufficient, and some bottle chip producers lowered quotations

by 50 yuan/tonne, and the focus of market negotiations edged down. Downstream demand is recovering slowly, market confidence is insufficient, and trading activity is limited. Market reference: East China water bottle material at 6,100-6,150; South China water bottle material at 6,100-6,200 self-pickup; North China water bottle material at 6,100-6,200 self-pickup.

Today's forecast: market prices may adjust slightly.

PET waste recycling

The recycled PET market ran weak last Friday. Most small and medium-sized bottle chip plants have not resumed production and are mainly selling earlier inventory, so recycled bottle chip availability is limited. End-user demand has yet to recover, recycled chemical fiber production and sales are mediocre, chemical fiber plants show low interest in raw material purchases and resist high-priced cargoes, and overall trading sentiment is sluggish. Market reference: East China machine-processed white flakes imitating large chemical fiber stood at

around 5,200 yuan/tonne.

Today's forecast: the market may remain in a stalemate and consolidate.

(Author: Fubao Plastics Research Team)

—Reprinted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-354726.html