[Plastic] Demand is king!

2020 is fleeting, and inventory of plastic industries with a scale of 100 million tons, whether it is general-purpose plastics or engineering plastics, has seen significant increases in production capacity and output, resulting in a decline in the prices of most varieties, except for ABS and EVA.

Careful analysis shows that in the case of an increase in supply, demand determines the direction of the market.

The supply and demand of PP and PE increased simultaneously, so the price decline was relatively small.

The domestic supply growth of ethylene and propylene is not outstanding, and the price declines vary greatly

With the diversification of raw materials and the steady growth of downstream demand, China's ethylene production capacity has steadily increased in recent years.

Propylene production capacity continues to show a trend of expansion, with total production capacity reaching 43.

From the price point of view, ethylene and propylene performed very differently.

The supply and demand of polyolefins are growing simultaneously, and the price decline is limited

Polyolefins ushered in a big year for production in 2020, and the newly added capacity of polyethylene was 3.

Although polyolefin production capacity has increased significantly, demand has also increased by more than 10%, so the price performance is not bad.

Demand side release, ABS and EVA prices hold up

ABS and EVA are the only two products in the plastics industry that have achieved price increases compared to 2019.

The trend of EVA in 2020 first declined and then rose.

Mismatch between supply and demand, most of the remaining products fell sharply

PS: PS supply will increase by 6% in 2020, of which 3.

PA66: In 2020, the overall PA66 market will rebound after falling.

PMMA: The supply of PMMA will increase by 9% in 2020, with domestic production of 240,000 tons and net import of 190,000 tons.

PBT: After the PBT industry has experienced a rapid expansion cycle in 2019, the industry's supply and demand has gradually become looser.

PC: In 2020, the PC market will fluctuate widely.

On the whole, the plastics industry has seen a clear differentiation in 2020.

Looking forward to 2021, the state proposes to build a "new development pattern with domestic and international dual cycles as the main body" and a development approach focusing on "demand-side reforms", which will have more obvious support for products near the consumer end.
Especially for raw material products such as automobiles and home appliances, it is expected that there will be relatively good market opportunities for plastic special materials, engineering plastics and other related products.

(Keywords: Plastic Industry)