News
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Weak demand, domestic PE market still faces downward pressure in December
In November 2023, the PE market fluctuated and declined, with a weak trend. Firstly, demand is weak, and the increase in new orders in downstream industries is limited. Agricultural film production has entered the off-season, and the start-up rate of downstream enterprises has declined. The market mentality is not good, and the enthusiasm for terminal procurement is not good. Downstream customers continue to wait and see for market prices, which affects the current market shipping speed and mentality. Secondly, there is sufficient domestic supply, with a production of 22.4401 million tons from January to October, an increase of 2.0123 million tons from the same period last year, an increase of 9.85%. The total domestic supply is 33.4928 million tons, an increas... -
Review of International Polypropylene Price Trends in 2023
In 2023, the overall price of polypropylene in foreign markets showed range fluctuations, with the lowest point of the year occurring from May to July. The market demand was poor, the attractiveness of polypropylene imports decreased, exports decreased, and domestic production capacity oversupply led to a sluggish market. Entering the monsoon season in South Asia at this time has suppressed procurement. And in May, most market participants expected prices to further decline, and the reality was as expected by the market. Taking Far East wire drawing as an example, the wire drawing price in May was between 820-900 US dollars/ton, and the monthly wire drawing price range in June was between 810-820 US dollars/ton. In July, the month on month price increased, with... -
Analysis of Polyethylene Import and Export in October 2023
In terms of imports, according to customs data, the domestic PE import volume in October 2023 was 1.2241 million tons, including 285700 tons of high-pressure, 493500 tons of low-pressure, and 444900 tons of linear PE. The cumulative import volume of PE from January to October was 11.0527 million tons, a decrease of 55700 tons compared to the same period last year, a year-on-year decrease of 0.50%. It can be seen that the import volume in October decreased slightly by 29000 tons compared to September, a month on month decrease of 2.31%, and a year-on-year increase of 7.37%. Among them, the high pressure and linear import volume decreased slightly compared to September, especially with a relatively large reduction in linear imp... -
Polypropylene’s New Production Capacity within the Year with High Innovation Focus on Consumer Regions
In 2023, China's polypropylene production capacity will continue to increase, with a significant increase in new production capacity, which is the highest in the past five years. In 2023, China's polypropylene production capacity will continue to increase, with a significant increase in new production capacity. According to the data, as of October 2023, China has added 4.4 million tons of polypropylene production capacity, which is the highest in the past five years. Currently, China's total polypropylene production capacity has reached 39.24 million tons. The average growth rate of China's polypropylene production capacity from 2019 to 2023 was 12.17%, and the growth rate of China's polypropylene production capacity in 2023 was 12.53%, slightly higher than th... -
Where will the polyolefin market go when the export peak of rubber and plastic products turns?
In September, the added value of industries above designated size actually increased by 4.5% year-on-year, which is the same as last month. From January to September, the added value of industries above designated size increased by 4.0% year-on-year, an increase of 0.1 percentage points compared to January to August. From the perspective of driving force, policy support is expected to drive a mild improvement in domestic investment and consumer demand. There is still room for improvement in external demand against the backdrop of relative resilience and low base in the European and American economies. The marginal improvement in domestic and external demand may drive the production side to maintain a recovery trend. In terms of industries, in September, 26 out ... -
Reduced equipment maintenance in October, increased PE supply
In October, the loss of PE equipment maintenance in China continued to decrease compared to the previous month. Due to the high cost pressure, the phenomenon of production equipment being temporarily shut down for maintenance still exists. In October, the pre maintenance Qilu Petrochemical Low Voltage Line B, Lanzhou Petrochemical Old Full Density, and Zhejiang Petrochemical 1 # Low Voltage Units have been restarted. Shanghai Petrochemical High Voltage 1PE Line, Lanzhou Petrochemical New Full Density/High Voltage, Dushanzi Old Full Density, Zhejiang Petrochemical 2 # Low Voltage, Daqing Petrochemical Low Voltage Line B/Full Density Line, Zhongtian Hechuang High Voltage, and Zhejiang Petrochemical Full Density Phase I Units have been restarted after a short shu... -
Where will polyolefins go due to the price decline of plastic imports
According to data released by the General Administration of Customs of China, in US dollars, as of September 2023, China's total import and export value was 520.55 billion US dollars, an increase of -6.2% (from -8.2%). Among them, exports reached 299.13 billion US dollars, an increase of -6.2% (the previous value was -8.8%); Imports reached 221.42 billion US dollars, an increase of -6.2% (from -7.3%); The trade surplus is 77.71 billion US dollars. From the perspective of polyolefin products, the import of plastic raw materials has shown a trend of volume contraction and price decline, and the export amount of plastic products has continued to narrow despite a year-on-year decrease. Despite the gradual recovery of domestic demand, external demand remains weak, b... -
At the end of the month, domestic heavyweight positive PE market support strengthened
At the end of October, there were frequent macroeconomic benefits in China, and the Central Bank released the "State Council Report on Financial Work" on the 21st. Central Bank Governor Pan Gongsheng stated in his report that efforts will be made to maintain the stable operation of the financial market, further promote the implementation of policy measures to activate the capital market and boost investor confidence, and continuously stimulate market vitality. On October 24, the sixth meeting of the Standing Committee of the 14th National People's Congress voted to approve the resolution of the Standing Committee of the National People's Congress on approving the issuance of additional treasury bond by the State Council and the central budget adjustment plan fo... -
Where will polyolefin prices go when profits in the plastic products industry decline?
In September 2023, the factory prices of industrial producers nationwide decreased by 2.5% year-on-year and increased by 0.4% month on month; The purchasing prices of industrial producers decreased by 3.6% year-on-year and increased by 0.6% month on month. From January to September, on average, the factory price of industrial producers decreased by 3.1% compared to the same period last year, while the purchase price of industrial producers decreased by 3.6%. Among the ex factory prices of industrial producers, the price of means of production decreased by 3.0%, affecting the overall level of ex factory prices of industrial producers by about 2.45 percentage points. Among them, the prices of the mining industry decreased by 7.4%, while the prices of the raw mate... -
Active replenishment of polyolefin and its movement, vibration, and energy storage
From the data of industrial enterprises above the designated size in August, it can be seen that the industrial inventory cycle has switched and started to enter an active replenishment cycle. In the previous stage, passive destocking was initiated, and demand led prices to take the lead. However, the enterprise has not yet responded immediately. After the destocking bottomed out, the enterprise actively follows the improvement of demand and actively replenishes the inventory. At this time, prices are more volatile. At present, the rubber and plastic product manufacturing industry, upstream raw material manufacturing industry, as well as downstream automobile manufacturing and home appliance manufacturing industry, have entered the active replenishment stage. T... -
What is the progress of China’s new polypropylene production capacity in 2023?
According to monitoring, as of now, China's total polypropylene production capacity is 39.24 million tons. As shown in the above figure, China's polypropylene production capacity has shown a steady growth trend year by year. From 2014 to 2023, the growth rate of China's polypropylene production capacity was 3.03% -24.27%, with an average annual growth rate of 11.67%. In 2014, the production capacity increased by 3.25 million tons, with a production capacity growth rate of 24.27%, which is the highest production capacity growth rate in the past decade. This stage is characterized by rapid growth of coal to polypropylene plants. The growth rate in 2018 was 3.03%, the lowest in the past decade, and the newly added production capacity was relatively low that year. ... -
Happy Mid-Autumn Festival and National Day!
The full moon and blooming flowers coincide with the Double Festival of Mid Autumn and National Day. On this special day, the General Manager's Office of Shanghai Chemdo Trading Co., Ltd. wishes you the most sincerely. Wishing everyone all the best every year, and every month and everything goes smoothly! Sincerely thank you for your strong support to our company! I hope that in our future work, we will continue to work together and strive for a better tomorrow! The Mid Autumn Festival National Day holiday is from September 28th to October 6th, 2023 (a total of 9 days) Best regards Shanghai Chemdo Trading Co., Ltd. Sep. 27 2023
