Plastic prices continue to fall in early August is expected to rebound

Recently, plastic prices have been operating at low levels due to the overall environmental impact of the plastics market. Poor sales and increased supply in the later period, most market participants expressed concern about the situation of the plastics market this year.
Since the second half of last year, about 1.5 million tons of coal chemical plants have been put into production. The original price system of the plastics market has been impacted by low-cost sources. The sharp increase in the supply of coal chemical products has a certain suppression effect on plastic prices. At the same time, the fall in oil prices in the third and fourth quarters of last year further reduced the cost of plastics. The sharp drop in the cost of oil head polyolefins and the collapse of the cost side have also caused plastic prices to fall back to some extent.
“Currently, the price of plastics has been falling continuously. The overall high production capacity in the near future is still the core reason.” Zhu Mingyuan, deputy general manager of the Commodity Department of CCB Futures, told reporters that with the successive launch of coal chemical plants, the production capacity of PE and PP general materials increased. LLDPE monthly production growth rate even exceeded 30%. However, LLDPE consumption growth rate remains below 10%, and is constrained by the lack of new growth points, making plastic prices continue to decline. "Currently, US crude oil production is still near its peak, and the Iranian nuclear talks will lead to an additional 1 million barrels/day of export volume from Iran, which will hit the international oil market. However, the current demand for crude oil is slow to recover, and crude oil prices will continue in the future. Maintain weakness."
In this regard, Zhu Mingyuan put forward different views. “Having experienced a sustained downturn in the past, plastics futures prices are gaining a new balance around 9,000 yuan/ton. Therefore, the short-term supply and demand pattern no longer supports the further decline in plastics prices.” Fast, but plastic has not yet entered the full excess mode, most products still have import requirements (such as LLDPE, individual grade PP products).

Jiuzhi Plastics Network

Super Abrasives


Superabrasives come in the form of grinding wheels and are used when the material being processed is either too hard or too delicate for regular abrasives.

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