This time, we will introduce the beginning of an article from the "Market Report" section, specifically the "Overview of the Chinese Resin Market" article titled "Trends in Chinese Resins by Category: General Decline Due to Normalization of Traffic in the Strait of Hormuz and Lower Crude Oil Prices."
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India Market Report | Progress in Addressing Stricter Regulations and Rising Raw Material Prices
In June, the Chinese resin market saw a sharp decline in prices for major resins such as PP, PE, PS, and PET, driven by the normalization of traffic in the Strait of Hormuz and the easing of tensions in the Middle East, which led to a significant drop in crude oil and naphtha prices. The high raw material costs due to geopolitical risks that had supported prices until May receded, and the "cost collapse" of upstream raw materials such as propylene, ethylene, styrene, and PTA, linked to lower crude oil prices, became a major factor in pushing down the prices of general-purpose resins.
Meanwhile, in China, while supply increased due to the restart of scheduled maintenance facilities, demand remained weak due to the sluggish real estate market and the slow recovery of the manufacturing sector. Downstream processing manufacturers continued to adopt a cautious purchasing stance, limiting procurement to the bare minimum due to expectations of further price declines. Overall, the supply and demand situation was characterized by "increased supply, weak demand, and low raw material prices," resulting in a generally weak performance in the resin market. ...〈Approximately 1216 characters remaining〉
The above is an excerpt from the article.
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