Polyolefin weekly: weak market, plastic

Description: last week the market last week, polyolefin prices drop resistance, L1705 contract fell 1.54%, PP1705 contract fell 2.55%.

End of the rally, the market weak. The market oversold rebound in the end, the contradiction between supply and demand fundamentals have not been effectively resolved, the market once again turn empty, near and far month contract are the main contract for january. In addition, the trend of polypropylene and plastic differences, spreads have widened trend.

International oil prices showed a downward trend shock. Crude oil futures in the last week to brush the new year low, but the decline slowed significantly compared with the previous week. The recent news of the crude oil market is not a strong positive appear, sad atmosphere continues to cover up. Although Saudi Arabia and Russia have stressed the possibility of extending the cut, but investors did not give too much attention, oil prices were flat. On the contrary, investors are worried about shale oil. The IEA expects shale oil "growth", Goldman in the report strongly optimistic about the prospects of shale oil, the overall market sentiment, resulting in oil prices remain Yindie trend. Oil prices are expected to rebound in the near future, the formation of a certain cost of polypropylene spot market support.

Supply and demand eased. Recent Petrochemical stocks showed a downward trend, imports of small changes in the chain, but the decline in the amount of maintenance loss slightly reduced, the overall market supply pressure has improved over the previous period.

Polypropylene overhaul increased supply and demand continue to improve. Downstream factory orders did not change significantly compared to the previous period, the demand is difficult to significantly improve the short term. The recent part of the device maintenance, so that the supply of goods fell, although Jinxi Petrochemical will soon drive, but will not make rapid increase in the supply of goods. Because the market supply will not increase significantly, supply and demand eased.