In the domestic plastic market prices continue to move down the center of gravity. Enter the off-season, downstream petrochemical production enterprises in early pressure prices, market to fall; Market prices edged up, shun and crude oil futures have wavelet rally support for a short period of time. But late, after the market fell back. Most downstream products order to have a bad review, this year compared with last year, demand for significantly less.
As of June 25, general plastic price index is 862.93, is on May 896.41 during this period, down 3.7%, or a significant increase in May.
Production: synthetic resins in China in May 2015 to complete the production of 4.05 million tons, up 2.6% from a year earlier. Of the five general plastics to complete the production of 4.05 million tons, up 8% from a year earlier, rose 1.4%. In may of petrochemical enterprise is still in repair, the production increase is limited, in June as part of the petrochemical enterprise to restart, is expected to yield is expected to improve. Domestic downstream plastic products production in May of 6.179 million tons, down 0.5% from a year earlier, mainly due to insufficient terminal business orders, started less than in previous years. In June, most varieties of plastics industry into the seasonal off-season, is expected to yield will continue to decline slightly.
Requirements: in May and June the domestic plastic products enterprise order gradually decline, especially in the mid to late June orders declined faster, significantly less than in previous years, most enterprises reflect current order. From the point of monitoring data, plastic mulching films into the seasonal demand off-season. Plastic pipe by the rain weather, plus the impact of the housing bust, and gradually into the off-season; Plastic packaging film orders less than in previous years, the enterprise capacity utilization is low; Plastic injection molding, daily necessities and other products demand also not as good as expected. Exports: in May 2015, China exported 880000 tons of plastic products, rose 3.5%, according to export a little better.
Zibo area we mainly research the part of the raw materials trade enterprises and agricultural film, pipe products. Trade enterprises are faced with the problem mainly flattening of regional resources brings the pressure of competition, and bring the profitability of the decline in demand; Plastic film, pipe products enterprises are faced with the problem mainly from two aspects of shortage of financing area and a decline in new orders. But in the area of zibo status relatively optimistic.
In July, domestic plastic market is still faced with larger supply pressure, demand side will not appear at the same time, the improvement of plastic market still is given priority to with weak downtrend is expected next month. Macro economic downturn, combined with the most varieties plastic into the traditional off-season, the boom of plastic industry as a whole will decline further in July.
Risk tip: poor products businesses generally reflect the orders at present, combined with the demand of the traditional low season is coming, order products enterprises is expected to worse, which makes the competition between enterprises, further intensify the operation risk. At the same time, the downstream pressure will continuously upstream conduction, the whole industry chain plastic operation risk.
