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Crude oil has fallen sharply, even plastics may be limited

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Crude oil has fallen sharply, even plastics may be limited

Categories:Industry News
Author:
Origin:
Time of issue:2011-02-14 00:00
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(Summary description)Dalian Plastics (LLDPE) futures continued their gains on the 11th. The main 1105 contract closed at 12,355 yuan/ton, up 135 yuan/ton. Technically, even the plastic upside form is still well preserved. Fundamentally, the continued rise of Asian ethylene prices will provide certain support to Liansu. And now it is about to enter the peak season of agricultural film demand, manufacturers have stocking needs and support LLDP to a certain extent, and the market outlook is expected to continue to fluctuate and rise. Crude oil fell sharply last Friday, and it is expected that even plastics growth may be limited.

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Crude oil has fallen sharply, even plastics may be limited

Categories:Industry News
Author:
Origin:
Time of issue:2011-02-14 00:00
Views:

Information

Dalian Plastics (LLDPE) futures continued their gains on the 11th. The main 1105 contract closed at 12,355 yuan/ton, up 135 yuan/ton. Technically, even the plastic upside form is still well preserved. Fundamentally, the continued rise of Asian ethylene prices will provide certain support to Liansu. And now it is about to enter the peak season of agricultural film demand, manufacturers have stocking needs and support LLDP to a certain extent, and the market outlook is expected to continue to fluctuate and rise. Crude oil fell sharply last Friday, and it is expected that even plastics growth may be limited.

　　 The New York Mercantile Exchange (NYMEX) crude oil futures closed at a two-month low on the 11th, as the news of Egyptian President Mubarak’s resignation eased concerns about continued tensions in Egypt that may lead to the disruption of major crude oil pipelines. The settlement price of March crude oil futures contract fell 1.15 US dollars to 85.58 US dollars per barrel, the lowest settlement level since November 2010, a drop of 1.3%. The situation in Egypt has changed rapidly in recent days. On the evening of the 10th, Mubarak stated that he would not resign before the September election, but at the same time handed over some power to the Vice President of Egypt. This decision made the demonstrators in downtown Cairo very angry, and they demanded that Mubarak step down immediately. Many traders said that the rapid changes in the situation caused the crude oil market to fall into violent volatility, but they did not give the direction of crude oil prices.

　　 In the Asian ethylene market, the Southeast Asian market closed up US$10 to US$1220.5-1222.5/ton CFR, and the CFR Northeast Asian market was calm and closed at US$1309.5-1310.5/ton. In Northeast Asia, the South Korean market was stimulated by the planned overhaul of equipment, and demand was strong. Some downstream plants in China were shut down. Zhenhai Petrochemical’s 550,000-ton ethylene glycol plant was shut down for maintenance for 7 days due to mechanical failure, and there was sufficient ethylene spot supply. In Southeast Asia, supply in Singapore and the Middle East is tight.

In terms of spot, the ex-factory prices of spot companies have adjusted prices to varying degrees, with an increase of between 100-300 yuan. In terms of spot quotations, the international crude oil continued to adjust. Driven by domestic price increases, prices have largely stabilized and moved slightly in some areas. Reported high, but the downstream wait-and-see atmosphere is strong, and the transaction is average. Among them, merchants in the South China PE market are mainly waiting and watching, and downstream factories are preparing to start construction one after another. Demand is quite scarce. The linear mainstream price is 11,200-11,400 yuan/ton. The PE market in East China reported a steady high. As demand has not yet recovered, merchants will wait and see for the time being. The linear mainstream price is between 11100-11200 yuan/ton. The quotations in the North China PE market rose, and the trading atmosphere was still light. In the morning, the merchants had a strong wait-and-see attitude, and the linear mainstream quotation was 11100-11200 yuan/ton.

　　 As downstream factories continue to start construction, procurement and stocking will be concentrated in the last two weeks. The short-term increase in demand will make it possible for petrochemicals to continue to raise prices. From a cost point of view, the optimistic price of raw materials still has a large room for plastic stocks to rise. It is generally expected that Liansu will maintain an upward trend in the next period of time, but the expectation of monetary policy tightening still exists. In addition, there are not many petrochemical equipment maintenance plans in the near future, the market supply is sufficient, and the upward range of LLDPE futures is expected to be limited.

Source: CICC Online

Article source: China Building Materials Network www.bmlink.com

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