Oil and raw materials plunge data
On Tuesday evening, international oil prices collectively fell by more than 7%. Brent crude oil futures fell below the $100/barrel mark within an hour of the opening of U.S. stocks, and U.S. oil WTI fell below $95/barrel at a minimum. In the early morning, the decline in US oil once expanded to 8%!
On the domestic side, oil futures fell miserably! Fuel oil plummeted 8.68%, hitting a new low in half a year. PTA dropped by 7.01%, staple fiber fell by more than 6%, asphalt fell by more than 5.69%, crude oil and low-sulfur fuel oil fell by more than 4%, PVC and soda ash fell by more than 3% , LPG, ethylene glycol, styrene fell more than 2%, PE, PP, methanol fell more than 0.66%. Energy futures suffered heavy losses!
The global economy is weak, the demand environment for bulk commodities has not improved, the price trend of most products is weak, and the domestic PVC market continues to decline.Type 5 in Tianjin market generally fell by ＄33, Ordos type 5 reported ＄928, and PVC fell by more than 2.72%.
In the past week, the PC market price in North China has plummeted by＄1181 from the original high of＄4696. As of July 12, the average price of PC new materials in the North China market was ＄3515!
In the past week, the price of PA6 has been like a roller coaster. It has either skyrocketed or plummeted. In three months, it has dropped from＄2666 to＄45. As of July 12, the mainstream average price of new PA6 materials in the South China market was＄2621!
Why are raw materials falling?
Judging from the situation in the first half of the year, the prices of dozens of bulk raw materials have fallen. On the one hand, the current macroeconomic weakness is expected to intensify, and the continued high inflation in the United States has intensified market recession expectations, resulting in a plunge in international oil prices, with WTI oil prices falling below $100 per barrel. Prices of bulk industrial products also peaked. In addition, since more than 70% of the profits in the market are divided up by upstream raw material companies, the mid- and downstream companies are greatly affected. Some companies even began to have a holiday in early July. While the demand for raw materials has dropped, it has also shown that the high price resistance, which also led to a collective decline in raw material prices.
In other words, the current plastics industry continues to be in a situation of weak supply and demand. In terms of crude oil, there is a long-short game of crude oil, and the trend is full of uncertainty. The chemical manufacturers in the middle of the industrial chain have entered the stage of "zero profit production", and the end consumer market is stubbornly going through the winter, and no one dares to act rashly. And many plastics continue to be out of the "off-season" from the fundamentals, the demand continues to be poor, and the price is difficult to see improvement.
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