Recently, the price of PE resin in Japan has risen significantly and its scope has continued to expand. Following the announcement of the price adjustment by Japan's largest PE resin supplier, on the 4th of this month, Japan's another PE resin manufacturer, Preman, also announced a price increase. Not only that, on the 6th of this month, Japan's Tosoh Corporation also announced a price increase decision.
Taking Preman as an example, the company stated in the price increase statement that due to the depreciation of the yen, coupled with continued production cuts by oil-producing countries, the geopolitical situation in the Middle East has deteriorated and other unfavorable factors such as HDPE, LLDPE, and PP resin. The price of the company's products increased by 20,000 yen (about 1200 yuan) per ton.
In addition, the price of nylon products also rises linearly. The price of nylon is expected to reach 550,000 yen per ton, while the price of nylon in the first quarter was 479,000 yen per ton. The increase was nearly 14%.
As always, the geopolitical risks associated with oil are concentrated in the Middle East. The Trump administration seems to have chosen to support Saudi Arabia in the continuing conflict between Saudi Arabia and Iran, which has increased the proxy war between Yemen and Syria to evolve into a comprehensive one. Exposure to the risks of war. However, with Saudi Arabia now receiving US support, they may be content to wait to see the effect of the U.S. re-implementation of sanctions, which greatly reduces the possibility of Iran’s attack.
All in all, the political situation in the Middle East is more likely to continue brewing than a full-blown war. Therefore, the political factors in the Middle East that have recently led to the rise in oil prices will temporarily stabilize.
On the other hand, as the OPEC coalition has achieved its key goal of eliminating excess global inventories, some Russian companies want to cut production. 'We believe the global energy market is currently balanced,' Putin said on May 25. 'Our arrangements have never been intended. It will remain in effect forever. 'He said.
According to Russia’s third-largest producer, Gazprom, Russia’s current daily production is about 500,000 barrels. According to data from Citigroup and ESAI Energy, the company and Rosneft will lead growth after output constraints relax. 2. Russian Oil Company began testing its capacity to increase production this week.