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The CHINAPLAS 2024 has come to a perfect ending!
The CHINAPLAS 2024 has come to a perfect ending! -
PE supply remains at a high level in the second quarter, reducing inventory pressure
In April, it is expected that China's PE supply (domestic+import+regeneration) will reach 3.76 million tons, a decrease of 11.43% compared to the previous month. On the domestic side, there has been a significant increase in domestic maintenance equipment, with a month on month decrease of 9.91% in domestic production. From a variety perspective, in April, except for Qilu, LDPE production has not yet resumed, and other production lines are basically operating normally. LDPE production and supply are expected to increase by 2 percentage points month on month. The price difference of HD-LL has fallen, but in April, LLDPE and HDPE maintenance were more concentrated, and the proportion of HDPE/LLDPE production decreased by 1 percentage point (month on month). From ... -
The decline in capacity utilization is difficult to alleviate supply pressure, and the PP industry will undergo transformation and upgrading
In recent years, the polypropylene industry has continued to expand its capacity, and its production base has also been growing accordingly; However, due to the slowdown in downstream demand growth and other factors, there is significant pressure on the supply side of polypropylene, and competition within the industry is evident. Domestic enterprises frequently reduce production and shutdown operations, resulting in a decrease in operating load and a decline in polypropylene production capacity utilization. It is expected that the utilization rate of polypropylene production capacity will break through a historic low by 2027, but it is still difficult to alleviate supply pressure. From 2014 to 2023, the domestic polypropylene production capacity has si... -
How will the future of the PP market change with favorable costs and supply
Recently, the positive cost side has supported the PP market price. Starting from the end of March (March 27th), international crude oil has shown a six consecutive upward trend due to the OPEC+organization's maintenance of production cuts and supply concerns caused by the geopolitical situation in the Middle East. As of April 5th, WTI closed at $86.91 per barrel and Brent closed at $91.17 per barrel, reaching a new high in 2024. Subsequently, due to the pressure of pullback and the easing of geopolitical situation, international crude oil prices fell. On Monday (April 8th), WTI fell by 0.48 US dollars per barrel to 86.43 US dollars per barrel, while Brent fell by 0.79 US dollars per barrel to 90.38 US dollars per barrel. The strong cost provides strong support... -
In March, the upstream inventory of PE fluctuated and there was limited inventory reduction in the intermediate links
In March, upstream petrochemical inventories continued to decrease, while coal enterprise inventories slightly accumulated at the beginning and end of the month, showing a mainly fluctuating decline overall. The upstream petrochemical inventory operated in the range of 335000 to 390000 tons within the month. In the first half of the month, the market lacked effective positive support, resulting in a stalemate in trading and a heavy wait-and-see situation for merchants. Downstream terminal factories were able to purchase and use according to order demand, while coal companies had a slight accumulation of inventory. The depletion of inventory for two types of oil was slow. In the second half of the month, influenced by the international situation, international c... -
Polypropylene production capacity has grown like mushrooms after rain, reaching 2.45 million tons in production in the second quarter!
According to statistics, in the first quarter of 2024, a total of 350000 tons of new production capacity were added, and two production enterprises, Guangdong Petrochemical Second Line and Huizhou Lituo, were put into operation; In another year, Zhongjing Petrochemical will expand its capacity by 150000 tons per year * 2, and as of now, the total production capacity of polypropylene in China is 40.29 million tons. From a regional perspective, the newly added facilities are located in the southern region, and among the expected production enterprises this year, the southern region remains the main production area. From the perspective of raw material sources, both externally sourced propylene and oil based sources are available. This year, the source of raw mate... -
Analysis of PP Import Volume from January to February 2024
From January to February 2024, the overall import volume of PP decreased, with a total import volume of 336700 tons in January, a decrease of 10.05% compared to the previous month and a decrease of 13.80% year-on-year. The import volume in February was 239100 tons, a month on month decrease of 28.99% and a year-on-year decrease of 39.08%. The cumulative import volume from January to February was 575800 tons, a decrease of 207300 tons or 26.47% compared to the same period last year. The import volume of homopolymer products in January was 215000 tons, a decrease of 21500 tons compared to the previous month, with a decrease of 9.09%. The import volume of block copolymer was 106000 tons, a decrease of 19300 tons compared to the ... -
Strong Expectations Weak Reality Short term Polyethylene Market Difficulty to Break through
In March of Yangchun, domestic agricultural film enterprises gradually started production, and the overall demand for polyethylene is expected to improve. However, as of now, the pace of market demand follow-up is still average, and the purchasing enthusiasm of factories is not high. Most of the operations are based on demand replenishment, and the inventory of two oils is slowly being depleted. The market trend of narrow range consolidation is obvious. So, when can we break through the current pattern in the future? Since the Spring Festival, the inventory of two types of oil has remained high and difficult to maintain, and the consumption pace has been slow, which to some extent restricts the market's positive progress. As of March 14th, the inventor... -
Can the strengthening of European PP prices continue in the later stage after the Red Sea crisis?
International polyolefin freight rates showed a weak and volatile trend before the outbreak of the Red Sea crisis in mid December, with an increase in foreign holidays at the end of the year and a decrease in transaction activity. But in mid December, the Red Sea crisis broke out, and major shipping companies successively announced detours to the Cape of Good Hope in Africa, causing route extensions and freight increases. From the end of December to the end of January, freight rates increased significantly, and by mid February, freight rates increased by 40% -60% compared to mid December. Local sea transportation is not smooth, and the increase of freight has affected the flow of goods to some extent. In addition, the tradabl... -
2024 Ningbo High end Polypropylene Industry Conference and Upstream and Downstream Supply and Demand Forum
Our company's Manager Zhang participated in the 2024 Ningbo High end Polypropylene Industry Conference and Upstream and Downstream Supply and Demand Forum from March 7th to 8th, 2024. -
Chinaplas 2024 from Apr 23 to 26th in Shanghai, see you soon !
Chemdo, with the Booth 6.2 H13 from Apri.23 to 26, at CHINAPLAS 2024（SHANGHAI），International Exhibition on Plastics and Rubber Industries,awaiting you to enjoy our good service on PVC,PP,PE etc.,would like to integrate all and keep improving together with you for a win-win success！ -
The increase in terminal demand in March has led to an increase in favorable factors in the PE market
Affected by the Spring Festival holiday, the PE market fluctuated narrowly in February. At the beginning of the month, as the Spring Festival holiday approached, some terminals stopped work early for vacation, market demand weakened, trading atmosphere cooled, and the market had prices but no market. During the mid Spring Festival holiday period, international crude oil prices rose and cost support improved. After the holiday, petrochemical factory prices increased, and some spot markets reported higher prices. However, downstream factories had limited resumption of work and production, resulting in weak demand. In addition, upstream petrochemical inventories accumulated high levels and were higher than inventory levels after the previous Spring Festival. Linea...