Review of the hottest Yuyao plastic raw material m

Review of Yuyao plastic raw material market in March and outlook in April

in the first quarter, the plastic raw material market situation of Yuyao China plastic city changed from a good one to a downward one. Specific trends: in January, market transactions were active, and prices rose steadily. In February, the market turned from hot to warm, and prices, as a strategic emerging industry, rose and fell. In March, market demand shrank and prices fell across the board. The US Iraq war was the key factor leading the ups and downs of the plastic market in the first quarter. Around the Spring Festival, with the increasingly tense situation of the war between the United States and Iraq, the international oil price rose all the way. On March 10, the average price of OPEC crude oil and WTI oil in New York reached $33.11 and $37.50 per barrel respectively, rising to the highest level in more than two years. During this period, war has become the theme of market operation and the hot spot of business speculation. As the war really started and the hype disappeared, the international oil price plummeted. This phenomenon is the common colloquial phrase in the stock market, "all good things are bad". The decline of the plastic market is inevitable

the overall market of low density polyethylene (LDPE) declined from high. In January, the market trend was strong, the transaction was booming, and the price rose sharply, with an increase of 300-600 yuan (ton price, the same below). In February, the market strength weakened, and the price rose before and then fell, but there was still an increase of 50-500 yuan. In March, the market was extremely volatile, the transaction shrank, and the price fell by 200-600 yuan

positive and negative factors affecting the market trend in the first quarter: first, positive factors: 1) the US Iraq war. For a long time before the start of the Iraq war, the theme of war has almost become the focus of people's discussion and the focus of the market. The expectation of the war has triggered a rise in market sentiment and buying, especially around the Spring Festival, when the war situation is increasingly tense

2) oil price. Affected by the tension of the war between the United States and Iraq, the oil price in the international market has soared, reaching a peak of nearly $40/barrel, pushing up the plastic market

3) high popularity. Due to the expectation of war and stimulated by the sharp rise in international oil prices, the industry is generally optimistic about the future market, which has increased the enthusiasm of traders and downstream users to enter the market, especially the reluctance of traders to sell and hoard goods, resulting in the shortage of market resources. At the same time, the sales of petrochemical production enterprises are not only smooth, but also hot, and there is a situation that supply exceeds demand. Even if the factory price is constantly raised, the inventory has always remained at a low level

II. Bad factors:

1) after the start of the US Iraq war, the war theme was digested, and the fried international oil price plummeted, which made the production cost of plastics lose support, the market was shaken, and the popularity was down

2) shrinking demand. Due to the downturn in downstream industries, most of the plastic products produced by enterprises belong to general products with low added value. Therefore, its price cannot be raised due to the rise of raw material price. Due to the oversupply of production and fierce competition in the industry, the price of plastic products continues to decline. For example, the price of film products declines, and its anti risk ability is low, so it has to suspend construction or reduce the operation rate, resulting in a significant contraction in terminal demand

in March, due to the weak effective demand, the market continued to decline, and the transaction was very light. The phenomenon of low price selling was everywhere, and the dealers' confidence in the market almost fell to the bottom. Stimulated by Sinopec's request that all affiliated enterprises jointly raise prices to support the market, a rebound finally occurred in mid March, with an increase of 200-300 yuan. However, the rebound was especially short-lived, which lasted less than a week. After late March, the low density polyethylene market weakened again amid the rumble of the US Iraq war

for the low-density polyethylene market in April, it can be said that it is confusing, with many variables. There are too many unpredictable factors that will affect the market trend. On the whole, adverse factors outweigh favorable factors. If the war in Iraq can be quickly ended and the international oil price can be relatively stable, the mentality and trading atmosphere of the whole market may change to some extent, and the LDPE market is expected to turn for the better. However, judging from the current situation, its downward trend will be inevitable

linear low density polyethylene (LLDPE) market rose in January, with active transactions. In February, the market rose and fell, and the transaction cooled down. In March, the market declined comprehensively and transactions were cold. The price of domestic materials fell to 6350~6500 yuan and imported materials to 6800~7000 yuan, basically returning to the level before the price rise

the main reason for the linear low-density polyethylene market to go up and down, from heat to cold, is basically similar to the low-density polyethylene market, but the market fundamentals are better than low-density polyethylene. First, in the two rounds of rising prices of polyethylene, linear low-density polyethylene not only took the lead and became the leading variety, but also was supported by the price rise of downstream agricultural film products. Second, the market is booming. Not only the transactions between the buyer and the seller are very active, the trading volume is significantly enlarged, but also the increase is the largest. The highest market price has surged to 7000~7400 yuan, and the supply has been relatively tight. Then, after a period of high-level consolidation, its price was raised again

in March, due to the limited ability of downstream users to bear high priced raw materials, coupled with the decline in the price of film products, it was even worse and the affordability was weaker. It is reported that some processing enterprises have begun to stop production, while others have taken measures to reduce the operating rate, resulting in a significant reduction in market purchases, resulting in shrinking effective demand. On the other hand, with the start of the war between the United States and Iraq, the sharp decline in international oil prices has greatly hit market confidence, and traders began to sell goods at low prices, thus accelerating the pace of the decline in the price of linear low-density polyethylene

in April, it is expected that the linear low density polyethylene market will not turn for the better, and its market may gradually stabilize

the high density polyethylene (HDPE) market is volatile, and the price fluctuates. In January, the market was relatively quiet in the first half of the month, and the market momentum was relatively strong in the second half of the month. The sales momentum improved significantly, and there was a round of rising market. In February, the market turned from strong to weak, and the price was adjusted appropriately after a sharp rise. In March, under the influence of various adverse factors, there were ups and downs, and the overall market slipped into the downward channel

the mainstream price of wire drawing materials at the end of the quarter is 6600~6700 yuan, +50/+100 yuan (compared with the price at the beginning of the quarter, the same below)

the early market in January was relatively calm due to the lack of demand power. Later, the market began to heat up, and the demand and market rose synchronously. The rise in demand is mainly reflected in the circulation field, as traders are optimistic about the future market and begin to attract goods. Encouraged by smooth shipments and declining inventories, petrochemical enterprises have raised factory prices one after another. On the other hand, the substantial increase in the quotation of imported goods has also stimulated petrochemical enterprises to increase the ex factory price, thus promoting the rise of market prices. In February, especially in the second half of the month, due to the fact that downstream users were unable to bear the high price of raw materials, the market entry was significantly reduced, while the confidence of dealers was shaken due to their long-term inability to deliver goods, especially the phenomenon of selling at low prices among some small and medium-sized dealers, resulting in a slight decline in the market price. In March, due to the increasing selling pressure in the market, the sales of all production enterprises generally stagnated and the inventory continued to increase. Therefore, various preferential policies had to be issued or the ex factory price had to be significantly reduced, resulting in an overall decline in the market price, with a range of up to 400-600 yuan (compared with the price at the end of the month and the beginning of the month)

note: the mainstream price of plastic at the end of the quarter is 6700~7000 yuan, +100/+300 yuan

plastic packaging material enterprises need to further improve their competitiveness. The market trend in January is rising before stabilizing. Due to the strong influence of polypropylene market, the price rise in the early stage is more powerful, and the transaction situation is better than that of other varieties. In February, the market rose before and then fell, but the rise was greater than the fall. As the market demand in the first half of the month is still relatively strong and the supply is relatively tight, on the other hand, it is also affected by the further rise in the price of polypropylene injection plastic, so the increase is relatively large. In the second half of the month, the market mainly fell with the general trend, so the decline is relatively higher than that in March. Similarly, when the terminal demand narrowed and the selling pressure increased, it is also difficult to escape the fate of a sharp decline in prices, ranging from 350 to 700 yuan

the mainstream price of film materials at the end of the season is 6650~7350 yuan, +150/+450 yuan

in January, due to the increase in the external quotation and the strong strength of linear low-density polyethylene, the market slowly improved and the price rose steadily. In February, in the first half of the month, the market price of some brands even rose to 7250~7800 yuan. In the second half of the month, it merged into the downward trend. In March, the main style of the market can be said to be weak demand, with prices falling by 200-550 yuan

the mainstream price of blow molding hollow materials at the end of the season is 7100~7400 yuan, +600/+700 yuan

from January to February, the market began to start, gradually improved, and showed a good market. Prices continued to rise, and the increase gradually increased, especially in the first half of February. In March, it fell with the tide, but the decline was less than that of other varieties, only 50-200 yuan. Therefore, the quarterly increase was still as high as 600-700 yuan

in April, the market trend of HDPE is still uncertain, and it is still affected by various adverse factors. First, the progress of the US Iraq war will affect the overall trend of the market. Second, the Asian HDPE market will face great downward pressure. Third, the downstream demand is not booming, and there is still room for price decline, so the situation is not optimistic. However, the possibility of bottoming out and stabilizing after the price of HDPE falls to a certain extent cannot be ruled out, but whether it can rebound depends on the length of the US Iraq war and specific conditions

polypropylene (PP) has a strong market performance for most of the time. In January, the market continued its strength at the end of last year, with booming trading and trading, and prices rising steadily. In February, stimulated by the tense situation in Iraq, the oil price in the international market soared sharply, coupled with market speculation, resulting in a hot scene in the market and pushing the price to a new peak. The price of homopolymer grade flat silk material not only broke through the 8000 yuan mark, but also broke through the last price peak (the peak in 1999). This soaring market is said to be of global scale. On the other hand, manufacturers frequently raised factory prices, as well as traders' reluctance to sell and suspension of quotations, which made the problem of tight supply more prominent and played a role in fuelling the flames

however, there are also some negative factors behind the excellent situation of polypropylene market. In particular, the sharp rise in polypropylene prices was strongly resisted by downstream users, resulting in the phenomenon of "price without market" in the second half of February, and the market price turned from flat to declining. Until March, with the outbreak of the war between the United States and Iraq, the international oil price plummeted and the demand shrank. Due to the long-term poor delivery, the market confidence has been shaken, and some traders, especially small and medium-sized traders, began to sell at low prices, making the inventory of manufacturers accumulate more and more, forcing some manufacturers to adopt corresponding price policies to stimulate sales, so as to alleviate the inventory pressure. While downstream users are more wait-and-see in the case of falling prices, b1.01 has led to the formation of a round of downward market. At the end of March, the mainstream market price of homopolymer flat yarn was 7050~7550 yuan, which was in line with the price at the beginning of the quarter