July Fade: PP, ABS, PE All Slip—Spot Markets Shed Up To $30 While Futures Dream Green

July Fade: PP, ABS, PE All Slip—Spot Markets Shed up to $30 While Futures Dream Green

Market Sentiment

The main theme this week remains "more declines than increases." The off-season for downstream sectors and inventory pressure have led to sluggish spot market transactions. Although futures markets have been boosted by macro sentiments, they have failed to drive spot prices up. This has resulted in a divergence of "red futures and green spot markets."

——Key Products Weekly Review——

1. PP (Polypropylene)

• Mainstream fibre: Down by $15~$30/tonne from last week.

• Copolymer injection moulding: Local concessions of $10-$15/tonne.

• Logic: High output of homopolymer and slow destocking by petrochemical firms; shrinking orders for BOPP and plastic woven products, with demand failing to support the market.

2. ABS

• General purpose: Widespread price drops of $15~$30/tonne in both East China and South China.

• High - end material: Narrower declines, with traders offering discounts to boost sales.

• Logic: Weak new orders for home appliances and electronic product casings, coupled with a weak styrene market, have dragged down the ABS market.

3. PE

• Linear: Petrochemical price cuts to promote sales, with low - end products down by $20~$30/tonne.

• High - pressure: Impacted by cheap imports, prices continue to ease by $10~$15/tonne.

• Low - pressure injection moulding: Relatively resilient, with only a minor correction of $10/tonne.

• Logic: The agricultural film season has not started yet, demand for packaging film is flat, and high port inventories are weighing on the market.

4. PC / PA6 (Supplementary Attention)

• PC: DiphenylA rebound, but downstream buyers are cautious, leading to a stalemate and fluctuations.

• PA6: New capacity for caprolactam has been released, causing cost - based collapses and a $30/tonne reduction in chip prices.

Summary

The off-season effect has been amplified, with increased destocking pressure on petrochemicals. PP, ABS, and PE have all declined, with no short - term signs of a price bottom. It is advisable to maintain light positions and quick turnover, and wait for the terminal restocking node in August.