The domestic plastic market showed favorable suppo

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In May, the domestic plastic market showed favorable support

at present, the general trend of the domestic plastic market has begun to stabilize, and the market prices in some regions such as corrosion resistance (Experiment in solution) have risen slightly. For a while, there has been no imported cash in the hands of importers in East and South China. Most of them have been sold by the original inventory, and the inventory of dealers and manufacturers has become more reasonable, This has resulted in the stable price situation since the middle of May. The specific factors for the market stability are as follows:

first, the relevant petrochemical enterprises at home and abroad have started or will enter the maintenance period, the market supply resources will be reduced, and the overall inventory pressure of the enterprises will be further reduced. In May, TPE supply of domestic plastic manufacturers that have successively started shutdown and overhaul will be tight, mainly including Daqing Petrochemical Company (May 10 - June 3 overhaul to improve compatibility with resin for PE, PP and PS), Jilin Chemical Company (May 16 - June 10 overhaul for LLDPE), Luoyang Petrochemical Company (may 12 - June 8 - June 10 overhaul for PP), In addition, the planned overhaul enterprises from June to July include Qilu Petrochemical Company (PE and PP will be overhauled on June 1 or 10 for one month), Yangzi Petrochemical Company (PE and PP ethylene renovation project in July will last for one month), etc. In order to avoid the annual maintenance schedule of cracking units in Japan and South Korea, PetroChina No. 5 Light Industry Co., Ltd. in Taiwan stopped on June 1 to start the 43 day annual maintenance project. The three polyethylene production plants, Formosa polymer, Formosa Plastics and Asia polymer, which rely on PetroChina to supply ethylene raw materials, will adjust their PE production and marketing plans. One HDPE production line with a daily output of 400 tons in Taiju was overhauled for one month in mid June; Formosa Plastics' two HDPE production lines with a daily output of 3.4 million tons were overhauled in June for one month; The production of three LDPE production lines with a daily output of 300 tons of Yaju may be reduced. It is said that some Korean plastic manufacturers such as Hanhua, Hyundai, Dalin, LG and some Japanese manufacturers are also overhauling due to the annual maintenance of the upstream cracking unit, which has a considerable impact on the supply of polyethylene and polypropylene in the domestic market

secondly, the high cost price keeps the high quotation of imported products. Recently, due to the different opinions of the buyer and the seller, trading in ethylene propylene or PE and PP Asian spot markets is very cold. Although the price of ethylene propylene raw materials fell back in the early stage, the recent momentum will be stronger, forming a strong support for downstream plastic products

at present, the ethylene plants in Japan and South Korea that are intensively discharged into annual maintenance in may include not only two sets of light oil cracking plants with an annual capacity of 900000 tons of Mitsubishi Chemical in Japan, but also the largest ethylene plant with an annual capacity of 1.19 million tons in Lichuan, South Korea. In addition, Hyundai Petrochemical's No.2 58000 ton ethylene plant will also be overhauled. The annual maintenance capacity of the cracking plants in Japan and South Korea in May totaled 2.67 million tons. It is expected that the ethylene propylene supply in Asia will basically return to normal in late June

two incidents in Europe and the United States have also exacerbated the tension in the market. Following the fire and shutdown of 950000 ton ethylene plant of shell in the United States on May 13, three European Dow Chemical cracking furnaces were damaged due to accidental power failure on May 16 and have stopped shipping. Due to several ethylene cracking unit failures, the local ethylene propylene price in Europe remains high and is imported and supplied by the United States, Asia and other regions. Since last week, ethylene in the Far East has been exported to Europe for sales, which means that there is enough gap between the ethylene market in Europe and Asia to trigger trade between the two sides. In this way, the ethylene propylene market in Asia is likely to be driven up by the European market

third, South Korean plastic producers at the Asia petrochemical industry conference disagreed on the rise and fall. According to the latest market news over the weekend, at the Asian petrochemical industry conference held in Seoul on May 14, South Korean PE manufacturers said that they decided to keep the freight quotation unchanged in May due to factors such as the overhaul of many devices in May, the high cost price and the fact that the price reduction may not necessarily increase sales; However, the price of polypropylene was reduced by USD/T. among them, the shipping price of general material to China and Southeast Asia was USD 600~610/T, and the price of copolymer was USD 610~620/T. although the price directly quoted by the manufacturer was higher, the middle low price quoted by the trading house was closer to the current domestic market price level

the newly imported resources of domestic plastic products in May are relatively limited, and the domestic import pressure is much smaller than that in the first few months of this year, which makes the domestic market form a stable and stronger fundamentals under the condition of reduced resources. In addition to the above supporting factors in detail, the cancellation of the policy of flipping prices after the plastic Festival by Sinopec production enterprises and the concentration of more resources in the hands of large middlemen have had a positive impact on the market. However, at the same time, the domestic plastic market is in a low demand season with few transactions, and the market resources need to be further digested by the market, Therefore, recently, the market will basically be in a narrow adjustment period in which electric vehicles powered by this battery can travel up to 1000 kilometers. The factory price of enterprises is mainly increased gently, which is mostly a tentative price adjustment. There is no intention to choose a continuous jump price change, because downstream manufacturers still have a large choice of market resources

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