Market dynamics | in mid May 2021, some plastics fluctuated at a high level, with PC up to 1100 RMB / T
Israel's shelling of Gaza and dozens of air strikes have caused serious damage to Palestine. Affected by international crude oil, the plastic market has also fluctuated greatly.
PVC market is expected to fluctuate at a high level this week
According to the latest plastic price, the domestic PVC market was stable as a whole last Friday, with a daily increase of 100 yuan / ton for individual brands. Cost side: this week, the calcium carbide Market froze after rising, the downstream PVC manufacturers increased equipment maintenance, the demand for calcium carbide is relatively reduced, but the coal price is up and down, the calcium carbide market is expected to fluctuate at a high level this week, or weaken with less demand（ (neutral) supply side: last week, the operating rate of PVC production enterprises decreased, and the market supply was less. This week, there are still enterprises stopping for maintenance, and the overall market supply is expected to decrease. Good PVC spot market（ (positive) demand side: last week, the social inventory was flat on a month on month basis, the downstream's ability to accept high prices was limited, there was a strong wait-and-see atmosphere in the market, and the trading was flat. PVC market is expected to fluctuate at a high level this week. It is suggested to pay attention to the price change and futures trend of raw calcium carbide market.
PE market is expected to be weak this week
According to the latest plastic price, the domestic PE market continued to decline last Friday, with some brands falling 50-300 yuan / ton daily. Supply side: the inventory of the two oil companies continues to decline. It is expected that the inventory of the two oil companies will accumulate slightly this week, the supply pressure of new units will increase, the number of maintenance enterprises will decrease, the average operating rate of the industry will increase slightly, and the overall supply will be abundant（ (negative) demand side: the downstream operating rate has not improved significantly, the operating rate of agricultural film in the off-season has decreased rapidly, and the overall demand follow-up is limited（ (bad) cost side: it is expected that the raw material ethylene market will stabilize and consolidate this week, the crude oil will fluctuate at a high level, the transportation cost of ethylene will increase, and the cost side support is acceptable（ The PE market is expected to be weak this week, with a weekly decline of less than 300 yuan / ton. It is suggested to focus on the downstream market.
Domestic PP market is expected to fluctuate this week
According to the latest plastic price, the domestic PP grain market narrowly weakened last Friday, with some rising or falling at 50-150 yuan / ton. On the cost side, this week's raw material propylene may fall from a high level, but the range is limited, the price is still relatively high, and the pressure of PP cost side still exists. In addition to propylene, it is worth noting that the price of steam coal continues to rise in the near future, gradually showing the effect of market support. On the supply side, this week, Yanshan Petrochemical Co., Ltd. (dimer 60000t / A, Sanju 250000 T / a), Jiujiang Petrochemical Co., Ltd. (100000 t / a), Shanghai Petrochemical Co., Ltd. (Sanju 200000 t / a), Zhejiang Petrochemical Co., Ltd. (450000 T / a) have plans to restart. There is no plan for other units to stop for maintenance and load adjustment. It is expected that the market supply will increase this week. As of May 14, the inventory of the two oil companies was about 745000 tons, with a slight decline, and the inventory was still controllable. In terms of new capacity, Donghua energy (Ningbo) phase II 400000 T / A and Tianjin United 200000 t / a new plants are now in normal operation, and the pressure of PP capacity expansion is not reduced. On the demand side, some plastic weaving factories shut down, orders decreased, raw material demand was less, and the environmental protection inspection in Shandong area was strict, which affected the overall start-up situation of the manufacturers; As for BOPP, after the May Day holiday, the new orders of membrane enterprises are limited, and some manufacturers need to store and replenish, but the overall demand is general. It is expected that the domestic PP market will continue to fluctuate this week. It is difficult to have a clear unilateral market, and the overall rise and fall is not large.
