Last month, the domestic plastics market price center continued to move downwards, and the downstream entered the off-season. At the beginning of the month, petrochemical production enterprises under pressure to cut prices, and the market followed. The mid-term crude oil futures showed a short wave of rebounds to support the market price, but in the latter half, With the increase in the pressure on the fundamentals of social supply and demand, the spot market has returned to the down market. Most of the downstream product companies in June reflected fewer orders, which were significantly less than in previous years. The lack of demand surface constituted a slump in the whole industry. As of June 25, the general plastics price index was 862.93, down 3.7 percentage points from 896.41 in the same period in May, and the decline was significantly larger than that in May.
Production: In May 2015, China's synthetic resin output reached 4.05 million tons, up 2.6% year-on-year; five of the general-purpose plastics completed output of 4.05 million tons, up 8% year-on-year and 1.4% quarter-on-quarter. Some petrochemical enterprises are still in the process of maintenance in May, and the output increase is limited. In June, with the restart of some petrochemical enterprises, the output is expected to increase. In May, the total output of domestic downstream plastic products was 6.179 million tons, down 0.5% from the same period of last year. The main reason was that the terminal enterprises had insufficient orders and started to work less than in previous years. In June, most of the plastics industry entered a seasonal off-season, and production is expected to decline slightly.
Demand: In May and June, orders for domestic plastic products companies declined, especially in the middle and late June, and orders declined. Most companies reported that the current orders were obviously insufficient. From the monitoring data, plastic agricultural film enters the seasonal demand in the off-season; plastic pipe is affected by the rainy weather and the real estate industry downturn, but also gradually enters the off-season; plastic packaging film orders are not as good as in previous years, the company's operating rate is low; plastic injection molding, daily necessities, etc. Product demand is not as expected. Export: China exported 880,000 tons of plastic products in May 2015, an increase of 3.5% from the previous month, indicating a slight improvement in exports.
In July, the domestic plastics market is still facing greater supply pressure, and the demand side will not be much better. It is expected that the plastics market will continue to be weaker next month. The macroeconomic downturn, combined with the majority of plastics entering the traditional off-season, will further decline the overall prosperity of the plastics industry in July. These are some of the summary of the plastics industry last month and the predictions of the plastics industry in July.
Jiuzhi Plastics Network
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