Industry News
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Strong Expectations Weak Reality Short term Polyethylene Market Difficulty to Break through
In March of Yangchun, domestic agricultural film enterprises gradually started production, and the overall demand for polyethylene is expected to improve. However, as of now, the pace of market demand follow-up is still average, and the purchasing enthusiasm of factories is not high. Most of the operations are based on demand replenishment, and the inventory of two oils is slowly being depleted. The market trend of narrow range consolidation is obvious. So, when can we break through the current pattern in the future? Since the Spring Festival, the inventory of two types of oil has remained high and difficult to maintain, and the consumption pace has been slow, which to some extent restricts the market's positive progress. As of March 14th, the inventor... -
Can the strengthening of European PP prices continue in the later stage after the Red Sea crisis?
International polyolefin freight rates showed a weak and volatile trend before the outbreak of the Red Sea crisis in mid December, with an increase in foreign holidays at the end of the year and a decrease in transaction activity. But in mid December, the Red Sea crisis broke out, and major shipping companies successively announced detours to the Cape of Good Hope in Africa, causing route extensions and freight increases. From the end of December to the end of January, freight rates increased significantly, and by mid February, freight rates increased by 40% -60% compared to mid December. Local sea transportation is not smooth, and the increase of freight has affected the flow of goods to some extent. In addition, the tradabl... -
2024 Ningbo High end Polypropylene Industry Conference and Upstream and Downstream Supply and Demand Forum
Our company's Manager Zhang participated in the 2024 Ningbo High end Polypropylene Industry Conference and Upstream and Downstream Supply and Demand Forum from March 7th to 8th, 2024. -
The increase in terminal demand in March has led to an increase in favorable factors in the PE market
Affected by the Spring Festival holiday, the PE market fluctuated narrowly in February. At the beginning of the month, as the Spring Festival holiday approached, some terminals stopped work early for vacation, market demand weakened, trading atmosphere cooled, and the market had prices but no market. During the mid Spring Festival holiday period, international crude oil prices rose and cost support improved. After the holiday, petrochemical factory prices increased, and some spot markets reported higher prices. However, downstream factories had limited resumption of work and production, resulting in weak demand. In addition, upstream petrochemical inventories accumulated high levels and were higher than inventory levels after the previous Spring Festival. Linea... -
After the holiday, PVC inventory has increased significantly, and the market has not shown any signs of improvement yet
Social inventory: As of February 19, 2024, the total inventory of sample warehouses in East and South China has increased, with social inventory in East and South China at around 569000 tons, a month on month increase of 22.71%. The inventory of sample warehouses in East China is about 495000 tons, and the inventory of sample warehouses in South China is about 74000 tons. Enterprise inventory: As of February 19, 2024, the inventory of domestic PVC sample production enterprises has increased, approximately 370400 tons, a month on month increase of 31.72%. Returning from the Spring Festival holiday, PVC futures have shown a weak performance, with spot market prices stabilizing and falling. Market traders have a strong ... -
The Spring Festival economy is hot and bustling, and after the PE festival, it ushers in a good start
During the Spring Festival of 2024, international crude oil continued to rise due to the tense situation in the Middle East. On February 16, Brent crude oil reached $83.47 per barrel, and the cost faced strong support from the PE market. After the Spring Festival, there was a willingness from all parties to raise prices, and PE is expected to usher in a good start. During the Spring Festival, data from various sectors in China improved, and consumer markets in various regions heated up during the holiday period. The Spring Festival economy was "hot and hot", and the prosperity of market supply and demand reflected the continuous recovery and improvement of the Chinese economy. The cost support is strong, and driven by the hot... -
Weak demand for polypropylene, market under pressure in January
The polypropylene market stabilized after a decline in January. At the beginning of the month, after the New Year holiday, the inventory of two types of oil has accumulated significantly. Petrochemical and PetroChina have successively lowered their ex factory prices, leading to an increase in low-end spot market quotations. Traders have a strong pessimistic attitude, and some merchants have reversed their shipments; The domestic temporary maintenance equipment on the supply side has decreased, and the overall maintenance loss has decreased month on month; Downstream factories have strong expectations for early holidays, with a slight decline in operating rates compared to before. Enterprises have a low willingness to proactively stock up and are relatively caut... -
Looking for directions in the oscillation of polyolefins during the export of plastic products
According to data released by the General Administration of Customs of China, in US dollars, in December 2023, China's imports and exports reached 531.89 billion US dollars, an increase of 1.4% compared to the same period last year. Among them, exports reached 303.62 billion US dollars, an increase of 2.3%; Imports reached 228.28 billion US dollars, an increase of 0.2%. In 2023, China's total import and export value was 5.94 trillion US dollars, a year-on-year decrease of 5.0%. Among them, exports amounted to 3.38 trillion US dollars, a decrease of 4.6%; Imports reached 2.56 trillion US dollars, a decrease of 5.5%. From the perspective of polyolefin products, the import of plastic raw materials continues to experience a situation of volume reduction and price d... -
Analysis of Domestic Polyethylene Production and Production in December
In December 2023, the number of domestic polyethylene maintenance facilities continued to decrease compared to November, and the monthly operating rate and domestic supply of domestic polyethylene facilities both increased. From the daily operating trend of domestic polyethylene production enterprises in December, the operating range of the monthly daily operating rate is between 81.82% and 89.66%. As December approaches the end of the year, there is a significant decrease in domestic petrochemical facilities, with the restart of major overhaul facilities and an increase in supply. During the month, the second phase of CNOOC Shell's low-pressure system and linear equipment underwent major repairs and restarts, and new equipme... -
PVC: At the beginning of 2024, the market atmosphere was light
New Year's new atmosphere, new beginning, and also new hope. 2024 is a crucial year for the implementation of the 14th Five Year Plan. With further economic and consumer recovery and more explicit policy support, various industries are expected to see an improvement, and the PVC market is no exception, with stable and positive expectations. However, due to difficulties in the short term and the approaching Lunar New Year, there were no significant fluctuations in the PVC market at the beginning of 2024. As of January 3, 2024, the PVC futures market prices have rebounded weakly, and the PVC spot market prices have mainly adjusted narrowly. The mainstream reference for calcium carbide 5-type materials is around 5550-5740 yuan/t... -
Strong expectations, weak reality, polypropylene inventory pressure still exists
Looking at the changes in polypropylene inventory data from 2019 to 2023, the highest point of the year usually occurs during the period after the Spring Festival holiday, followed by gradual fluctuations in inventory. The high point of polypropylene operation in the first half of the year occurred in mid to early January, mainly due to the strong recovery expectations after the optimization of prevention and control policies, driving up PP futures. At the same time, downstream purchases of holiday resources resulted in petrochemical inventories falling to the low level of the year; After the Spring Festival holiday, although there was an accumulation of inventory in the two oil depots, it was lower than market expectations, and then inventory fluctuated and di... -
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...