Crude oil prices, plastic market hold up when?

- Jul 16, 2019-

This year oil prices, plastic market rise seems to have become a rule.

This time, in addition to the positive news of sino-us trade easing, there is also the positive news of OPEC+ 's willingness to greatly increase production.

In the early hours of the morning, data released by the American petroleum institute (API) showed that U.S. crude oil inventories at the API fell by 812,000 barrels in the week ended June 14.

Industry insiders believe the oil market is likely to rebound on Thursday if interest rate decisions are very dovish.

The PE market is relatively calm

Recently, the price increase has been large, the linear high has broken through 8200 yuan/ton, and the disk price increase on July 4 continues to narrow, the market rise space is limited, downstream demand, although there is a demand expectation in August and September, but the industry replenishment mentality is not strong, the transaction is flat.

The overall market price of propylene is relatively stable. Due to the insufficient acceptance of high-end goods by the downstream, some production enterprises have lowered the factory price in a narrow range, so that the price of low-priced goods is also lowered. Currently, the market price is in a sorting state, and the mainstream price is 7650 yuan/ton.

Futures rose significantly, petrochemical plant prices with the rise, and before due to the parking maintenance part of the supply shortage, spot prices back to high temperature, downstream inquiry atmosphere can be, low supply volume is obvious, PP market turbulence is expected to rise today.

The PVC market has been tepid recently

Recently, the price increase is around 70-80 yuan/ton, mainly because the pipe is in the off-season and the device is back to work more, depressing the market, manufacturers expect that the PVC market in July is likely to callback.

The price of styrene rose slightly

The market transaction momentum is good, the quotation in south China is 8850 yuan/ton, and the market price of butadiene is stable. In the second half of 2019, the overall performance of the domestic ABS market may be depressed first and then increase.

July-august is still the low season for traditional production, adding to uncertainties such as the trade war between China and the United States. The production and sales level of some home appliances, such as air conditioners, declined significantly compared with the first half of the year.

From the perspective of the plastics market, the market demand began to recover slowly in the third quarter, and the installation started more than in the previous period, and the newly added production capacity was released, the market supply and demand trade shield is still protruding.

But the early plastic market affected by the us-china trade environment, as well as the demand for weak, prices sink is opposite bigger, obviously in recent stage plastic market presents the upward trend of repair, and the current sino-us trade environment better, petrochemical factory quotation are raised, petrochemical stock is low, demand factors such as market is expected to release, the market has upward momentum, due to the supply pattern, so the afternoon to predict the price is relatively limited upside.