North American PE fundamentals support price increase in March
The performance of the spot market continued to be strong this week. The average price of most PE grades was within the range of 65-70 cents/pound.
In February, the IHS contract benchmark index rose by 4 cents from the previous month.
In March, the spot market has become quiet, but prices are still expected to have a steady rise.
The supply is still tight, and it is difficult for buyers to buy more goods. In particular, the price of exports to Latin America continues to rise this week.
Demand has not seen signs of abating. Both domestic and export markets are interested in buying and are expected to remain until the price increase in March.
Most North American suppliers announced a three-cent increase in March prices, which has also been supported by the continued tight supply and demand fundamentals.
North American PP prices fall with raw material prices
Into the new months, PP trading has not been able to change the quiet state, this week the price fell 2 cents to 60 cents / lb (Houston FOB). I heard that secondary products to the terminal price range of 55-60 cents February PP contract prices fell 6 cents, in line with the monomer range in March is expected to fall another 6 cents.
However, many manufacturers said March orders are large.
Basel announced on April 1 on the basis of monomer volatility raised 5 cents.
Western Europe PE is expected to balance the overall supply and demand
From a macro perspective, the European economy remained strong with industrial goods prices up 0.4% in January, falling inflation and the unemployment rate plunging to a 10-year low.
Affected by investor interest and higher-than-expected US stocks suppressed, oil prices continued to decline to a two-week low.
The drop in upstream raw materials led to a contraction in the price of the ethylene contract in March of 20 EUR to 1,057 EUR, which is in line with the January price level.
The seller’s initial quotation shows that the PE price rose in March, but buyers hope to talk about lower prices.
Although the cracker returns, the overall supply and demand are expected to be balanced due to the reduction of imports.
Western Europe PP force majeure affect the market pattern
The original market pattern of supply and demand balance became chaotic due to a series of force majeure effects in February. By the end of the month, the actual situation was not as serious as expected and no news about the supply issue was received from buyers.
The price of most February PP contracts rose by 30 euros per ton, basically in line with the monomer increase of 28 euros.
The single-unit contract price in March was reduced by 23 euros to 917 euros, which is a reflection of the drop in naphtha prices at the end of February.
Based on the current market conditions, the PP contract price in March is expected to decline with the monomer price, and it is expected that the upstream gross profit will not be very good.
Most PE buyers in Asia have already completed the supplement before the Lunar New Year holiday, with limited demand
China's import market has steadily weakened, and some suppliers have been privileged for the high season. However, market participants are cautious about the complex market conditions, declining social inventory levels and Dalian disc LL's weaker downstream interest. Moreover, most buyers The family has completed the supplement before the Lunar New Year holiday, so there is no intention of purchasing. Therefore, it is still unknown whether the current quotation can be maintained.
China's domestic market weakened this week, and petrochemical stocks were used as a storehouse during the holiday. The local major manufacturers discounted their shipments. Furthermore, the decline in Dalian LL has also dampened the market sentiment to some extent. However, the good one is at the end of February. Days petrochemical stocks continued to decline from the holiday high point.In addition, Shenhua Coal unplanned downtime also caused market tensions .The market that demand will be improved in mid-March.
Asian PP seller discounted shipping inventory down
PP import market trading activity is limited, Chinese buyers take the edge to see the strategy.Some suppliers expect the replenishment behavior downstream after the holiday will raise the offer, however, the response was bleak.
The domestic market continued to decline this week, social stock market continued to suppress the market sentiment index weakens the confidence and desire to extinguish the buyer re-stocking, and in the downstream before the holiday has taken to buy with random strategy.As a result of stable production and adequate inventory , For manufacturers in terms of hard to push up the price for higher gross margin.Of some sellers and even discounted shipping inventory.Dalian disk PP again callback, market participants are expected to continue until mid-March. Two barrel of oil in a pessimistic market sentiment Lower prices.