According to ChemOrbis, the global market participants are closely watching the dynamics of cude oil, waiting to bring the signal to downstream petrochemical industries. Earlier this week, Saudi Arabia announced that will not cut crude oil production, the news triggered a new round of price cuts. Such as downward trend in 2015 will last long, Bloomberg analysts expressed doubts. Last week, the New York Mercantile Exchange and the Intercontinental Exchange, crude oil futures prices have fallen to $54 each/ bbl and $59/ barrel, experienced the biggest decline since 2008, the reason is that the continuous excess supply.
Saudi Arabia is able to persuade other OPEC member to join no cut camp? Or the US shale gas investor is able to gain a firm foothold in the oil price crash of the challenges? These issues are unknown. On the other hand, Europe and Asia, Europe and Asia, analysts said the economic slowdown, leading to local weak demand for crude oil, which also makes oil prices cast a shadow.
Crude oil future prices fell on downstream olefins and polyolefins market also has an impact. According to the China market participants said the recent buyers have resumed restocking, buying interest improved. Although the futures market due to fluctuations in crude oil prices fell again in Europe.
But earlier this week PP and PE futures prices rose for the Chinese domestic market, PP and PE prices higher paved road. In addition, it was reported the Asian ethylene prices have stabilized recently, a few days ago began to stabilize. Propylene, despite adequate supply problems still exist, but buying interest has been restored and the spot market prices rose slightly.
Some market participants said that China’s recent improvement in demand will be temporary, after the buyer would choose to meet their needs on the sidelines again. Buyer are still waiting for lower prices, because the difference between propylene and PP is still great. Before the Spring Festival holiday, we expect buying interest would not have changed substantially. On the other hand, according to ChemOrbis, olefins and polyolefins market might stabilize if energy prices are no longer falling.