Plastics Market Forecast: Crude's Second Straight Gain Fails to Lift Prices, March 25 Outlook Bearish

The U.S. is expected to roll out

a $2 trillion economic relief package. That prospect eased some—though not all—fears over coronavirus-driven demand destruction. International crude oil futures closed higher on Tuesday for a second straight session, though below intraday highs. May WTI settled up $0.65, or 2.8%, at $24.01/bbl; May Brent gained $0.12, or 0.4%, to settle at $27.15/bbl.

Market sentiment was bearish yesterday, with some prices extending losses. Linear futures moved lower in choppy trading, some petrochemical producers again reduced ex-works prices, traders turned pessimistic, and selected deals continued to carry discounts. End-use demand stayed weak, factories bought sparingly, and volumes showed little sign of expanding. Market reference: Shunde prices edged in a narrow range; Guangzhou

2001 was quoted at 6,380-6,400 yuan/ton excluding tax; Chongqing offers consolidated narrowly, with Sichuan Chemical 7042 at 6,400-6,450 yuan/ton; Anhui softened slightly, with Yangzi 5000S at 7,050 yuan/ton.

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

The market ran weak yesterday. Polypropylene futures drifted lower, some petrochemical firms continued to cut ex-works prices, spot cargoes mostly traded in a weak range, sellers kept offering discounts, downstream demand saw little improvement, buying was limited to modest low-price replenishment, and follow-through was lackluster. Market reference: Shunde prices slipped slightly; Zhanjiang

V30G at 6,600 yuan/ton; Xi'an ran at low levels, with Yaneng Chemical EPS30R at 7,000 yuan/ton; Tianjin quotations retreated, with North China Petrochemical T30S at 6,600 yuan/ton.

Today's forecast: prices may continue to trend lower.

PVC market:

PVC quotations continued to move lower yesterday. Some East China ethylene-based grades saw larger cuts, with declines reaching

200 yuan/ton, while large downstream buyers still expect further declines. Inquiries were scarce and trading was quiet. Market reference: Hebei quotations were reduced, with calcium carbide process type 5 material referenced at around 5,850-5,890 yuan/ton delivered; Hangzhou fell, with mainstream calcium carbide process type 5 spot ex-works pickup at 5,750-5,900 yuan/ton; Changzhou quoted multiple levels, with mainstream type 5 calcium carbide process prices near 5,730-5,900 yuan/ton.

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

Prices fell yesterday. Weighed by sharply lower upstream styrene and large ex-works price cuts, traders focused on discounting cargoes, pulling negotiation levels lower. Inquiry sentiment was ordinary, with deals negotiable. Market reference: Shantou continued to slide; Xinghui

118 at 7,050 yuan/ton excluding tax; Dongguan reference prices fell, with Cheng Zhenjiang Chi Mei PG33 at 8,120 yuan/ton excluding tax.

Today's forecast: quotations may be lowered again.

ABS market:

ABS prices continued to edge down yesterday. Bearish sentiment remained heavy, traders offered small discounts in line with the market, downstream buying was cautious, and transactions were thin. Market reference: Dongguan quotations were mixed; Ningbo Formosa

15E1 at 9,600 yuan/ton excluding tax; Shantou's decline was hard to halt, with Jilin Chemical 150 at 9,500 yuan/ton excluding tax.

Today's forecast: the market is expected to remain range-bound to lower.

The market was weak and range-bound yesterday. The Federal Reserve announced new facilities to support the economy, and international oil prices ended slightly higher, yet support for polyester feedstock was limited. Most bottle chip producers kept quotes stable, while a few cut slightly. Overall downstream demand was fair, mainly for just-in-time needs, and trading sentiment remained quiet. Market reference: East China water bottle material prices at

5,250-5,400; South China water bottle material at 5,300-5,400 ex-works pickup; North China water bottle material at 5,300-5,400 ex-works pickup.

Today's forecast: prices are expected to be broadly stable with minor fluctuations.

PET recycled material

The market ran at low levels yesterday. Cost support was weak, the virgin material market stayed sluggish, further weighing on recycled-market sentiment. Raw material collection was slow, washing plants showed little willingness to sell cheaply, and recycled bottle flake supply was tight. Due to the international pandemic, some export orders were returned, raising inventory pressure on recycled chemical fiber products; chemical fiber plants bought on dips and purchased as needed, with a few suspending receipts. Market reference: East China machine-grade white flakes for imitation large-scale chemical fiber at

4,200-4,300 yuan/ton.

Today's forecast: amid a supply-demand standoff, the market is expected to run weak.

——Source: China Packaging Network (pack.cn), original link: http://news.pack.cn/show-354946.html