Plastic News

CHINA PLASTIC NEWS

PMMA
Domestic PMMA transacted acceptably. Inquires were there in the morning and traders had willingness to ship. The business done was cautious and traders did it at a proper time. Latest Market Price: PMMA mixed-color shred materials 8,200 RMB/T.

ABS
Domestic ABS price was stable and traders were optimistic. Downstream demand was general and goods holders ran business at a large amount. Trading volume was general. Traders had no intentions of preparing for goods and market stock could meet the needs of demand. Latest Market Price: ABS regrinds of computer chassis 6,200-7,000 RMB/T.

PVC
Domestic PVC supply was adequate, but low downstream demand made upstream sellers unconfident. The trading atmosphere was sluggish. Latest Market Price: PVC clear film 7,000 RMB/T.

LDPE
Domestic supply of LDPE shred materials was general and trading atmosphere was sluggish. Goods holders quoted firmly and were cautious. Downstream demand was slow and buyers procured not positively. Latest Market Price: LDPE mixed-color shred materials 3,650 RMB/T, LDPE clear top granules 7,800-8,000 RMB/T, mixed-color granules 4,200-4,600 RMB/T.

PP
Domestic PP supply was adequate with spot goods. Downstream demand was weaker and trading atmosphere was stalemate because of the negotiation for a lower price. Latest Market Price: PP white shred materials 7,000 RMB/T.

PS
Domestic spot goods of PS were small and some sellers shipped all goods and had no intentions for imports. Presently, high overseas quotation, clear customs and cost made it hard for domestic traders to accept. Latest Market Price: PS clear blister sheets 6,000 RMB/T.

PA
Domestic PA supply was adequate and downstream demand was weak. Buyers received goods cautiously, and inquires and watching attitudes were the mainstream. Latest Market Price: PA 66 silk waste 15,000 RMB/T.

HDPE
Domestic HDPE price was lower slightly and supply was limited. Buyers received goods negatively and the trading volume was small. Latest Market Price: HDPE white milky bottles 5,900 RMB/T.

PET
Domestic PET price was lower by 50 RMB/T. Supply was not enough and small profit was still. Buyers received goods not positively and watching attitudes were strong in the market. Latest Market Price: PET clear flakes 6,900 RMB/T.

(1RMB=0.1475USD)

PLASTIC MARKET CONTINUES TO SOFTEN AMID PRODUCER SENTIMENT
The spot resin markets were busier this past week; transacted volumes increased and prices
The spot resin markets were busier this past week; transacted volumes increased and prices
were mixed. Polyethylene lost about a penny and it looks like Polypropylene found it. The
overall domestic market was slightly softer, while export demand and prices firmed. Spot
resin demand was very good and noticeably stronger than in previous weeks. It is interesting
that prices along commodity resin supply chains moved in concert: Crude Oil, Propane,
Propylene and Polypropylene prices were all stronger; while Natural Gas, Ethane, Ethylene
and Polyethylene prices all fell.
The U.S. Energy markets moved in opposite directions this past week. Crude Oil for August
delivery recovered more than half of the previous week’s losses, adding $3.95/bbl to end the
week at $76.09/bbl. Natural Gas futures continued to drop, with the August contract falling
another $.285/mmBtu, to settle at $4.402/mmBtu on Friday. The Crude Oil: Nat Gas price ratio
expanded back to more than 17:1.
The spot Ethylene market began the week about a penny higher, but then gave back the gains
and more. After peaking at $.74/lb in April, spot Ethylene has actually pierced below the
$.30/lb level; July traded at $.295/lb on Friday and was subsequently offered a touch lower.
The forward months are priced at a modest discount to material for prompt delivery. The June
Net Transaction Price (NTP) of Ethylene was $.395/lb, down $.0525/lb.
Polyethylene prices dropped about $.01/lb this past week, with fluctuations seen between
grades. There was some evening up to do as June contracts settled a bit weaker than some
had expected. As in May, HDPE and LLDPE contract prices peeled off $.06/lb; entering July
still $.06/lb higher for 2010. LDPE fell $.04/lb in both May and June, holding on to $.10/lb of
first quarter gains. Contract buyers are looking for further relief in July; early producer
sentiment is that the extra relief was seen in June.
The spot Propylene market has been quiet for weeks, but finally posted a lone PGP trade at
$.5375/lb. This is a little lower than the initial July contract settlement of $.555/lb, which is a
rollover from the same price in June. RGP prices were basically steady this week at
$.4275/lb.
Polypropylene prices continued to recover, adding another $.01/lb this past week. The spot
market seemed to overdo it on the downside in early June; some over-zealous traders caught
with material were willing sellers at discounted prices, while buyers in general had backed
away expecting further erosion in July. The Polypropylene market began to recover when
Propylene prices stabilized and prospects of July weakness dissipated. PP contracts in 2010
were up $.22/lb through April, gave back $.20/lb between May and June, and will likely follow
PGP contracts steady in July.
Now that resin prices had given back a significant part of their earlier year gains, processors
are starting to return to the market seeking higher volume purchases. Although prices could
certainly continue lower, at this point it might be wise to keep ample (not massive) resin
inventories on hand, especially into hurricane season. As we often see in downward trending
markets, buyers that hold out too long to execute railcar purchases end up paying more for
last minute truckloads to bridge their supply gap, rewarding distributors with inventory.
After coming off so sharply the past couple months, and now finding some relative stability, it
is somewhat surprising that resin producers have yet to issue blanket price increase letters
for August. While it is still early in the hurricane season, forecasters have predicted a high
number of storms; it might only seem prudent to have a price increase nomination already on
the books – even if just in case.

CHINA MARKET DOMESTIC PRICES
PMMA
Domestic PMMA market was general, and downstream buyers procured on demand. Many sellers did business with regular customers and the transactions were done cautiously. Latest Market Price: PMMA clear plates 9,800 RMB/T.
ABS
Almost ABS species were stable and some traders were not much optimistic about the future market. Order amount was small and trading volume was a few though inquires were many. Latest Market Price: Abs regrinds of telephones 3,200-4,000 RMB/T.
LDPE
Domestic LDPE film transacted generally and supply was stable. Goods holders shipped at a proper price and downstream buyers were cautious and procured on demand. Latest Market Price: LDPE 98 film 5,300 RMB/T, LDPE top granules 7,800-8,000 RMB/T.
PVC
Domestic PVC price was lower slightly and supply was adequate. Downstream demand was weak and inquires were many. Goods holders quoted firmly and trading volume was not large. Latest Market Price: PVC soft cable or wire wrappers 6,000 RMB/T.
PP
Domestic PP supply was adequate and stock was many in the market. Goods holders were waiting for selling at a high price. Downstream buyers were positive to receive goods but they negotiated clearly for a lower price. The trading atmosphere was stalemate. Latest Market Price: PP bumpers 4,000 RMB/T, PP woven bags 3,400-3,600 RMB/T.
PA
Domestic PA supply was adequate and downstream demand was weak. Inquires were many and traders were cautious to do the business. The trading atmosphere was sluggish. Latest Market Price: PA regrinds 8,000-9,000 RMB/T.

HDPE
Domestic HDPE market was stable and supply was limited. Goods holders and buyers held the different views about the future market and so the trading atmosphere was sluggish. Latest Market Price: HDPE white milky bottles 6,000 RMB/T.

PET
Domestic PET price was maintained on the high level. Supply was tight and so the positivity of shipment was low. Buyers were cautious at procurement. The trading volume was limited. Latest Market Price: PET clear sheets 7,000 RMB/T.

PS
Domestic PS price was not much high and sellers held poor intention for shipping. Goods holders were difficult to accept the low price and the trading atmosphere was general. Latest Market Price: PS shred materials of fridges 3,500 RMB/T.

(1RMB=0.1477USD)
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Plastics imports for May dragged down in China, Turkey
July 12, 2010
In China, the country imported a total of 1,246,000 tons of plastics in May, indicating a decrease of more than 113,000 tons from April and a larger decrease of 455,000 tons from March, when the country set an all-time high for plastic imports. Homo PP imports declined to 292,000 tons in May, indicating a decrease of 9% month over month and 16% when compared to the same period of last year. South Korea maintained its position as the largest PP exporter to China with 82,000 tons, followed by Saudi Arabia and Taiwan with respective exports to China of 53,000 and 43,000 tons.
China imported 78,000 tons of PVC in May, a slight reduction of 3% when compared to April. While the month over month decline was slight, China's PVC imports are well behind the figures seen in the first half of 2009. Indeed, for the first 5 months of this year, China has not even reached half the import amounts reported in the same period of 2009. Japan was the number one exporter of PVC to China in May with 29,420 tons, which was followed by the United States at 21,647 tons and Taiwan at 20,720 tons.
In the PE market, HDPE and LDPE imports eroded by 17-18% while LLDPE imports slumped by 28% from April. The country imported a total of 266,000 tons of HDPE in May with Iran having the largest share of HDPE imports with 59,000 tons, which was followed by South Korea with 56,000 tons. Meanwhile, China's PS imports posted a relatively small monthly decrease of 6%, falling to 91,000 tons with Taiwan being the largest exporter to the country.
When looking at the Turkish statistics, the country imported 308,000 tons of plastics in total for the month of May, showing a slight decrease of 3% from April, when was a record high based on the past 10 years' data. Homo PP imports fell by 5% on the month to 81,000 tons with Saudi Arabia sustaining its position of being the main supply source with 38,000 tons of exports. PVC imports slumped by 10% on the month to 49,000 tons in May with the US being the number one exporter to Turkey for the month.
In contrast to falling PP and PVC imports, May HDPE imports rose by 13% from April to 51,000 tons while 20,000 tons of LLDPE imports were recorded, indicating a very slight increase from April. Saudi Arabia had the largest share of imports for both products with 9,600-9,800 tons of exports. PS imports were also slightly higher in May at 22,000 tons with Belgium being the main import supplier to Turkey

SCRAP METALS AND PLASTICS INT'L

EMAIL: greg@scrapmetalsandplastics.com