The epidemic and oil prices have a dual impact on the expanded polypropylene price fluctuations in early 2022

The impact of oil price fluctuations on the expanded polypropylene

Throughout the recent period of the expanded polypropylene in international oil prices, the market once made a stress response, various chemical varieties of the expanded polypropylene , especially crude oil directly related varieties sharply pulled up and fell, the difficulty of long-short judgment suddenly increased.

Among many varieties, the expanded polypropylene price should be focused on, it is worth mentioning that the expanded polypropylene price recently showed a continuous upward trend, with crude oil rising force is obvious, and when the crash did not follow the trend back too much. In the follow-up, is there room for the expanded polypropylene prices to rise? Follow-up market how to see it?

Demand is performing well and there are expected signals

From the perspective of the expanded polypropylene downstream demand, the overall performance is worth looking at optimistically, and future market expectations are relatively optimistic. Specific view, the expanded polypropylene terminal construction was improved in the recent period of time, the expanded polypropylene enterprises have also appeared in turn in a good state, the enterprise is still bullish on related infrastructure demand this year, power in the field of infrastructure or become a big driver of the expanded polypropylene , including recently for a period of time as its exports continued to be strong, It is fairly clear that global demand is strong. On the whole, the expanded polypropylene demand is optimistic, and there is a certain continuous optimistic expectation in the future.

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Price volatility is still likely to continue to rise

In the short term, due to the expected pulling effect of the expanded polypropylene and demand links and the combined influence of crude oil and another cost end of the price, the expanded polypropylene prices ushered in a wave of short-term pull-up market, it is expected that the follow-up market is still likely to continue to rise. But we should pay attention to the international oil price callback that may give birth to the downside risk of commodities, the expanded polypropylene is expected to have an impact, followed by fluctuations.

The epidemic affects the price of the expanded polypropylene paste resin

The price of PVC paste resin, an essential ingredient for disposable gloves used to fight COVID-19, peaked at 25,500 yuan per ton last year. However, with the stabilization of the epidemic situation, the demand for the expanded polypropylene paste resin decreased, the inventory of manufacturers was high, and the price dropped significantly.

Longzhong information industry analyst Wang Yilin told financial union reporters that the current price of the expanded polypropylene paste resin is not high, stable near 11,000 yuan. However, due to repeated outbreaks and the increased downstream demand, the current price should remain stable. If the manufacturer's inventory can be cleared quickly and the new demand brought by the epidemic continues to increase, the price of the expanded polypropylene paste resin may rise in the future, but the impact of the epidemic is complicated, and the time period of price rise is difficult to determine.

But the expanded polypropylene paste resin in the short term is likely to rise significantly? In this regard, Wang Yilin told financial Union reporters that the epidemic has spawned demand, but it has also brought difficulties to the sales and transportation of products. At present, downstream demand has not shown a trend of sharp rise. More importantly, at present, the inventory of relevant production enterprises is relatively high, destocking is the most important thing for enterprises at present, only when the inventory comes down and the demand continues to increase, the price of the expanded polypropylene paste resin can rise significantly.

Recommended by suppliers of the expanded polypropylene in China

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If you have any questions about the expanded polypropylene or want to seek our help. Send an email to sales@polypvc.com ,please feel free to contact us.

Or go to the company website: www.polypvc.com

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