On May 5th, the General Plastics Index was 830 points, unchanged from yesterday, a decrease of 29.12% from the highest point in the cycle of 1,171 points (2021-10-14), and an increase of 27.11% from the lowest point of 653 points on April 6th, 2020. (Note: The cycle refers to 2011-12-01 present)
In April, the general plastic industry saw an overall red trend. After the Qingming Festival, the general material consumption market has gradually taken over the pattern of downstream resumption of work in March. At the same time, March and April are also the peak seasons for some plastic products such as PE. Coupled with the release of pre holiday stocking demand during the May Day holiday, multiple consumer side benefits are added to the April rigid demand base. The strengthening of international crude oil at the beginning of the month in the remote upstream injected strong cost support into the general plastic industry. Except for EVA, the general material market has shown a positive trend during the month, boosted by demand and cost.
Fundamentals: The mid month market consolidation of raw material ethylene lacks guidance. After the recovery of supply, there has been an increase in offers; In the first half of the month, both supply and demand of vinyl acetate decreased, leading to a stalemate in the market. The downstream load is gradually decreasing, and consumption is shrinking. In early April, domestic EVA enterprises faced high demand and supply pressure. Weak demand within the month and slow product circulation speed.
Leading factor: In the early stage, domestic EVA enterprises started construction at a high level of nearly 90%, and the focus of factory pricing was lost. Although it dropped significantly to around 70% at the end of the month, the demand side continued to be weak, and the supply of goods on the market was overwhelming and difficult to digest. The traditional downstream procurement of foam shoe materials and cable materials is weak. The purchasing level of photovoltaic enterprises is lower than expected, and on-site trading is concentrated in low-end offers. There are few new orders in the market, and the supply-demand contradiction is becoming increasingly intensified.
There is no significant turning point in the current domestic EVA market pattern. The second raw material is expected to provide smooth support for spot goods in the future market. There is little possibility of a rebound in demand after the end of the period, and the market may still be struggling to maintain the demand line. In the short term, the EVA market may tend to be weak, and it is recommended to closely monitor the supply side trends.
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