In August, after being suppressed for so long, the plastic market finally showed signs of “rising”.
At the end of July, the commodity market immediately witnessed a “full rebound”! This is very much like the “story at the end of the month” in May, which is somewhat like “history repeats”!
Like the last time the Federal Reserve announced an unprecedented 75 basis points increase in interest rates, the US government copied the situation of last month in July.
When the negative news of interest rate increase came to the ground, the market was hit by a wave of chicken blood, US stocks rose unreasonably, and the commodity market rebounded across the board.
Styrene, ethylene glycol, fuel oil and low sulfur fuel oil increased by more than 4%, PVC, crude oil and asphalt increased by more than 3%, and plastics, PP, PTA, LPG and staple fiber increased by more than 2%!
Futures related to plastics have basically risen across the board! Bring great confidence to the spot market!
It is worth noting that since July 22, plastic futures have risen for five consecutive days, with PP and plastics up more than 5% and PVC up more than 8%.
Although the rebound is not large, it also gives a little hope to the continuously depressed market.
In addition to the rebound in the futures market, recently, policy support has also supported the market rebound.
In addition to the early subsidy activities for new energy vehicles and green household appliances, on July 21, the executive meeting of the State Council pointed out that urban policies should promote the steady and healthy development of the real estate market, protect the rigid demand for housing, and reasonably support the improvement demand.
The Russian Ukrainian issue continues to unfold. The prices of crude oil, natural gas and other energy continue to soar, driving up the prices of petrochemical raw materials. Even overseas giants are difficult to absorb costs by themselves.
However, on the other hand, the domestic market has entered the off-season, and the downstream market demand is difficult to rise. The traders feel that the price increase letter of overseas giants is also difficult to set off waves on the domestic market!
Post time: 08-11-2022