
Business analyst Xue Jinlei believes that the rubber and plastic market in May was better than April, mainly due to rising costs and tight supply, but the demand did not show a fundamental improvement. It is expected that the rubber and plastic market will not show much improvement in June and needs to be vigilant. There may be a second drop in the market.
According to the data, there are 11 kinds of products that have risen in price in the rubber and plastics sector in May, accounting for 5% of the monitored commodities, of which one kind has risen by more than 5%. The top 3 products were butyl rubber 1751 (6.77%), LDPE (4.02%) and HDPE (2.93%). There are 6 kinds of products with falling prices. The top 3 products in the drop are POM (-3.91%), nitrile rubber N41 (-3.03%), and butadiene rubber (-2.35%).
From the aspect of supply and demand, the contradiction between supply and demand for general plastics has improved. Since April, the number of petrochemical maintenance devices has increased, which has affected the production capacity. Inventories have been declining. In May, results have been achieved. The supply of certain products such as polyethylene and polystyrene has been in short supply, and limited production and guaranteed prices have given a certain boost to the market. The contradiction between supply and demand for synthetic rubber and natural rubber is still sharp. In particular, natural rubber, the market is still in the process of de-stocking, and the new plastic listing makes the market worse, while the downstream tire market is still sluggish, the phenomenon of manufacturers to reduce production and promotion is not uncommon.
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