News summary
The operating rate of the plastics industry declines during the maintenance seasonjackpotcitynodepositbonusDownstream orders weakened. Despite the fall in crude oil prices, the valuation of plastics remains low, and it is recommended to hold light positions to hold more orders in the early period.
Newsletter text
[Market Dynamic Analysis]
The maintenance season in the plastics industry is approaching, and the operating rate is reduced
Entering the maintenance season of the plastics industry, some production lines, including Fujian United and Dushanzi Petrochemical, have begun to enter the maintenance stage. This week, operating rates fell by 7 percentage points month-on-month, returning to a lower level again, down 8 percentage points compared with the same period last year.
Downstream demand slowed, but long-term treasury bonds and real estate policies boosted the market
After May Day, the operating rate of downstream industries showed a marginal weakening trend, mainly affected by the seasonal decline in agricultural film orders. Although the manufacturing PMI index fell slightly in April, it remained in the expansion range. With the successive issuance of ultra-long-term treasury bonds and the continuous introduction of favorable policies in the real estate market, the market maintains a positive attitude towards demand expectations. Market participants should pay close attention to the recovery of subsequent demand.
Crude oil prices fluctuate, plastic costs are under pressure
Although crude oil prices fell after May Day, the decline was considered limited. According to market valuations, the cost of plastics is still at a low level. However, resistance in downstream markets to high-priced raw materials has also been observed.
Strategic suggestion: Light warehouse holds multiple orders for plastics in the early stage
In the current market environment, investors are advised to adopt a light position holding strategy for multiple orders in the early stage of plastics. Against the background of the maintenance season and improving demand expectations, the market dynamics of the plastics industry deserve close attention from investors.