Monomer costs have surged

In July, WTI rose from a low of $70 per barrel to the latest $81.8 per barrel, an increase of more than $10 per barrel. Driven by crude oil, monomers also generally increased, with ethylene, propylene, styrene, and pure benzene rising by $80 to $150 per ton within the month. According to statistics, the rise in raw material prices has led to an accumulated increase in the calculated production cost of ABS by $100 per ton over the past month.

As of today, the production costs at chemical plants are: GPPS $1140/ton, ABS $1313/ton, HOMOPP $950/ton, domestic ABS RMB 10315/ton.

In response, some chemical plants have taken the lead in responding, making it less likely for factory prices to fall. Despite the fact that the market demand for product manufacturers has not fully recovered, flour cannot be more expensive than bread. Taking advantage of the low position of plastics and the relative stability of the RMB exchange rate, it is known that many traders have bought in at a low level, preparing for price increases. Factories must study market trends and coordinate appropriately with product sales.