China Plastics Price Index (June 16-22)

　　In this issue (June 16-22), the bears dominated, and the three major plastics futures markets continued to dive
.
Pessimism shrouded the market.
Under the spot price transaction, the spot quotations of the three major plastics continued to decline.
Among them, the spot quotations of polyvinyl chloride (PVC) dropped sharply, and the prices of polypropylene (PP) and linear low-density polyethylene (LLDPE) also appeared to varying degrees.
fell
.
On the whole, downstream purchases are mainly based on just-needed purchases.
Under the mentality of buying up and not buying down, some companies delayed entering the market for purchases
.
In this issue, the market price of Guangdong Plastics Exchange has been lowered, and the overall transaction has been flat
.
As of the close, the China Plastics Price Index of the Plastics Exchange was at 1290.
96 points, down 53.
97 points
.

　　In late June, some parts of the country ushered in hot summer weather, and some areas suffered floods during the flood season, which affected the construction of downstream real estate infrastructure and other industries to a certain extent
.
Under the influence of multiple negative factors such as repeated epidemics and the entry of downstream production into the off-season, the recovery of terminal demand continued to fall short of market expectations
.
In addition, the export profits are not good, and the downstream purchasing speed is lower than the plastic production speed, which leads to an increase in social inventory
.
On the whole, dominated by unfavorable factors, the short-term trend of the plastic market is weak or difficult to reverse
.

　　PVC continued to fall The bears continued, the futures market fell sharply, and the closing price of PVC fell to the lowest level since half a year
.
Led by point-price transactions, spot prices dropped sharply, PVC spot inventories increased for two consecutive weeks, and the market was bearish
.
Downstream companies cautiously wait and see, some just need to purchase at low prices, and the overall transaction is weakening
.
As of the end of the period, the mainstream self-delivery price of type 5 ordinary calcium carbide in South China and East China markets was 7660~7700 yuan (ton price, the same below), down 600~650 yuan from last week
.
The Fed's interest rate hike has led the market to re-evaluate bulk commodities, the price focus has shifted downward, the price of PVC upstream calcium carbide has been adjusted back, superimposed on the weak recovery of domestic demand, social inventory has increased for two consecutive weeks, and the bearish mentality has strengthened
.
In the follow-up, domestic policy support measures are still in place, and the effect may be delayed
.
Before the positive support in the market, it is expected that the short-term PVC will still be dominated by a correction trend
.

　　PP is running weakly, the futures are weak, the ex-factory price of petrochemicals is partially lowered, traders' offers are weak, and downstream factories follow up as needed, and the purchasing attitude is cautious
.
As of the end of the period, the mainstream quotation of domestic PP wire drawing materials was 8450~8850 yuan, down 125 yuan from the previous issue
.
In terms of supply, petrochemical enterprises have seen a slight increase in plant maintenance losses recently.
The new plant in Weifang Shukang, which was put into operation in the early stage, has been steadily granulated.
In the later stage, attention should be paid to the progress of the commissioning of the new plant in Tianjin Bohua, and the supply side is still expected to increase
.
The recent sharp adjustment in international crude oil prices has frustrated market trading confidence, driving down the prices of chemical products
.
In terms of demand, the overall downstream demand has recovered slowly, the follow-up of corporate orders has not changed much, and the downstream purchase transactions have been flat.
It is expected that the PP market will fluctuate weakly in the next period
.

　　LLDPE market fell , the futures continued to weaken, the ex-factory price of petrochemicals was partially lowered, and traders' offers mostly followed the decline, and the enthusiasm of downstream terminal inquiries was not high
.
As of the end of the period, the mainstream domestic LLDPE quotations were between 8,550 and 9,000 yuan, down 240 yuan from the previous period
.
In terms of supply, recently, the operating load of petrochemical enterprises has declined slightly, and some petrochemical enterprises have continued to reduce load due to the high cost pressure
.
In this period, the proportion of LLDPE plant production scheduling has rebounded slightly, but the magnitude is limited, and the overall pressure on the supply side is not large
.
In terms of inventory, the current inventory level of petrochemical enterprises is slightly higher than that of the same period last year
.
In terms of demand, the overall construction level of downstream industries is not high.
In addition, the orders of enterprises have not improved significantly, and the willingness of downstream terminals to receive goods is not good.
It is expected that the LLDPE market will adjust slightly in the next period
.

　　(China Plastics Price Index Research Center)