Oil Price War Hits Plastics: March 10 Resin Market Outlook for Flexible Packaging

An oil price war between Saudi Arabia and Russia sent international crude down roughly 25% on March 9.

April WTI settled at $31.13/bbl after losing $10.15, or 24.59%; May Brent settled at $34.36/bbl, down $10.91, or 24.1%.

China's plastics market yesterday was mostly range-bound, with selective declines. The crude slump and limit-down linear futures kept spot sellers cautious, pushed most offers lower and left actual trading thin; downstream plants bought small volumes on dips, keeping overall sentiment average. Market reference: Zhengzhou offers were consolidating, with Lanzhou

5000S at 7,200-7,250 yuan/t; Shanghai quotes were consolidating, with Shanghai Petrochemical Q281 at 8,000 yuan/t; Wuhan offers held steady, with Shenhua 2426H at 7,500-7,550 yuan/t.

Today's forecast: prices are expected to stay range-bound.

Mainstream prices yesterday drifted lower in a narrow band. Both crude and futures fell clearly, weakening sentiment support; bearishness was pronounced, sellers followed with discounts, and trading was poor. Downstream demand remained sluggish, inquiries were sparse and factories mostly watched from the sidelines. Market reference: Xiamen prices saw minor adjustments, with Dushanzi Petrochemical

K8003 at 8,350 yuan/t; Lanzhou offers consolidated, with Lanzhou Petrochemical T30S at 7,150 yuan/t; Hangzhou offers consolidated, with Sanyuan T30S at 7,250 yuan/t.

Today's forecast: choppy-to-weak prices are expected.

PVC market:

PVC prices continued to consolidate within a stable range yesterday, with deals concentrated at lower levels. Producer shipping pressure remained heavy, and although downstream

operating rates improved somewhat, weak end demand and slow trading continued to cap the market. Market reference: Changzhou quotes were negotiable, with carbide Type 5 mainstream at

6,150-6,280 yuan/t; Hangzhou quotes were stable, with mainstream at 6,150-6,400 yuan/t; Shanghai mainstream quotes were stable at 6,200-6,400 yuan/t on cash self-pickup.

Today's forecast: prices may ease slightly.

Yesterday this segment showed a stable-to-soft trend. Excessive crude losses and limit-down moves across commodity plastics fueled strong risk-averse waiting; sellers awaited ex-works guidance, showed little quoting interest and deals were scarce. Market reference: Dongguan quotes fell across the board, with Zhenjiang Chi Mei

PG33 at 8,370 yuan/t, excluding tax; Shantou quotes consolidated within a stable range, with SECCO 123P at 8,000 yuan/t, excluding tax.

Today's forecast: the market is expected to weaken then stabilize.

ABS market:

ABS was lackluster yesterday, with local offers extending a stable-to-lower trend. Fresh positives were scarce, and the crude and futures slump loosened market sentiment; traders actively discounted to move cargo, on-floor trading was light and actual deals were negotiated. Market reference: Shantou quotes fell broadly, with Jilin

150 at 10,130 yuan/t, excluding tax; Dongguan quotes fell broadly, with Ningbo Formosa Chemicals 15E1 at 10,040 yuan/t, excluding tax.

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

Prices fell sharply yesterday. International crude plunged and both polyester feedstocks declined; under this bearish backdrop, pessimism spread, most bottle chip producers cut offers by

300 yuan/t, and sellers also lowered quotes. Downstream demand was recovering gradually, but market deals were limited and trading was thin. Market reference: water bottle chip prices at 5,750-5,850 in East China; 5,800-5,900 self-pickup in South China; 5,750-5,850 self-pickup in North China.

Today's forecast: the market is expected to be narrowly weaker.

PET recycled materials

Yesterday prices in parts of North, East and South China moved down by

100-200 yuan/t. Crude oil collapsed and the virgin material market fell sharply, weighing on recycled materials. Washing plants had not fully resumed production, so recycled bottle flake supply was moderate; end demand recovered slowly, recycled fiber production and sales were sluggish, buyers mainly pressed prices and overall on-floor trading was slack. Market reference: white flakes for spinning in the imitation large-plant chemical fiber segment in East China at around 5,150 yuan/t.

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

——This article is reprinted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-354735.html