Resin raw material prices and weak downstream market demand caught in a dilemma

Recently, the overall chemical market to maintain stronger trend, styrene and two DEG to maintain low market supply and demand, prices continue to rise; ethylene glycol by the market for the introduction of the draft futures speculation, the focus of the market sharply higher, continue to refresh the high point of the year. Statistics show that as of December 9th, styrene rose 600 yuan / ton, ethylene glycol rose to 770 yuan / ton, two glycol rose to 460 yuan / ton. However, this time the cost of a substantial rise in the market has little effect on the unsaturated resin.

Chemical market strong run unsaturated resin market has little effect
On the one hand, during the November raw materials skyrocketing, unsaturated resin market pull up too fast, and greatly, has made the downstream steel glass and artificial stone factory into a loss situation, they can not price with the resin price increases sync up. Downstream real single slow follow-up, the early stage of the cost of the increase has not yet digested finished, a short time the price is difficult to follow the raw material market continued upward.

On the other hand, the market into the traditional low season, the overall trading atmosphere to weak. Coupled with environmental checks are still continuing, the downstream glass steel plant started to be limited, the overall start in about 3. For the high price of resin, downstream resistance is more concentrated. According to the JOYOU information to understand, at present many resin factory orders significantly reduced, pre orders also completed delivery, sales piandan. But the unsaturated resin manufacturers high prices for raw materials purchase intention is weak, the main digestive inventory of raw materials, cost pressures can digest, offer temporary hold.

For now, the UPR plant is caught in a dilemma between rising raw material prices and weak demand for the downstream market. And in December, for most of the resin enterprises, the priority is not to sell, but to return the funds. Therefore, JOYOU is expected in the short term, regardless of how the raw material market fluctuations, the resin market will remain at the current level of prices, waiting for the market trend of further uncertainty.