July cost and supply a good plastic spot soared all the way1

Since July, the domestic plastic spot market prices rise, according to the monitoring, business club until the end of July LLDPE up nearly 800 yuan/ton, up more than 7%, say that the driving force of the rise in the plastic market mainly factors both surging costs and tight supplies.

the cost side, the international crude oil have been running high in July month WTI break through $108, the rise in crude oil for downstream plastic inflated costs significantly, the domestic petrochemical production enterprises under cost pressure, only by constantly increase ex-factory price to ensure that the profit space, in addition, the international market prices are higher, Asia and North America LLDPE gains the biggest gain in 50 dollars, up and down outside dish go up also partly driven by inside dish the price.

since July, domestic plastic spot market tight supply, on the one hand, the domestic petrochemical plant overhaul, impact, large capacity, according to business club, lanzhou petrochemical, fushun petrochemical, daqing petrochemical, qilu petrochemical, Shanghai geumbi set of parking, affect the production capacity of more than 2 million tons, in addition, the petrochemical recently has been distributed valuation, limit order, affected by the market supply of goods is relatively tight, east China, south China and north China inventory all have varying degrees of decline, in addition, imported goods nearly two months have fall, so the plastic spot market relatively tight supply. Demand side, the usual practice, July and August are polyethylene downstream products manufacturer stock up period, and the market of wire drawing, weather warming coated and packaging film and other raw material demand will improve, but the current situation of the market, located in the high raw material prices to a certain extent, hampered the end user purchase, plus the downstream products factory orders, exports not free, the purchasing enthusiasm is not high, on-demand procurement as the core more. Parking on the mulch film production base, the demand of the films is starting, affected by the high cost of low demand, the downstream manufacturers inventories low, plus, high temperature, such as bad weather, the downstream demand for raw materials co. , LTD.

the plastic spot still on the rise, but business club, an analyst at Xue Jinlei expect the recent rally will gradually slow, mainly downstream demand doesn't really amplifier, downstream factories generally low capacity utilization, high cost and low demand form game, does not exclude the market demand by inhibition of stagnation phenomenon, the recent market is expected to remain high range correction is given priority to.