Plastic Information News: It is understood that plastic prices have been running at a low level due to the overall environment of the plastic market. Due to poor sales and increased supply in the later period, most market participants expressed their concern about the plastic market situation this year. Xie Long, an analyst, believes that there will be a restocking market in the plastic market in early August, which is expected to drive the rebound of plastic futures prices.

"At present, plastic prices are falling endlessly, and the recent high overall production capacity is still the core reason." Zhu Mingyuan, deputy general manager of CCB Futures Commodity Department, told the reporter that with the continuous production of coal chemical equipment last year, the production capacity of PE and PP general materials increased rapidly, and the monthly production growth rate of LLDPE even exceeded 30% year-on-year. However, the growth rate of LLDPE consumption is still within 10%, and due to the lack of new growth points, plastic prices continue to fall.

It is worth noting that although the absolute price of plastics is at a low level in recent years, from the cost side, the oil price has dropped from last year's high level, with a drop of up to 50%. From this point of view, the current price of plastics is still within a reasonable range.

Source: Engineering Plastics Online