In November 2012, the Chinese rubber and plastic market showed a lack of activity during what should have been a peak season, with overall conditions deteriorating. Market analysts noted that although there was some stabilization observed before the end of the year, the market remained under pressure. According to industry monitoring, most rubber and plastic products experienced price declines, with 73.6% of items on the monitoring list showing a downward trend. Some general plastic products saw slight increases, while engineering plastics and synthetic rubber faced more significant drops.
Xue Jinlei, an analyst from the Business Society, pointed out that recent fluctuations in oil prices and improved economic data had led to rising expectations for crude oil prices, which provided some support to the rubber and plastic sector. However, despite this, a short-term reversal in the market was unlikely. Instead, the market was expected to remain within a narrow range of fluctuations.
Looking at sub-sectors, general plastic products demonstrated stronger resilience compared to engineering plastics and rubber. Prices for LLDPE, HDPE, LDPE, and PS saw slight increases. In contrast, upstream prices for engineering plastics dropped significantly. For example, caprolactam, a key raw material for PA6, fell by 12.82% over two months, while adipic acid, used in PA66 production, dropped by 7.38% in November. Butadiene also declined sharply by 20.61%, leading to lower prices for synthetic rubber. Butene and styrene (Shun Ding) fell by 12.4% and 14.28%, respectively.
On the supply side, most raw material manufacturers completed maintenance in October, resulting in stable operating rates. The average operating rate for the rubber and plastic market in November reached 82.3%, up slightly from 78.5% in the previous month. Additionally, new production units, such as those at Fushun Petrochemical and Qilu Petrochemical, were put into operation, increasing the overall supply. Import volumes of raw materials also remained high, contributing to rising port inventories.
From the demand side, the market entered its traditional off-season, leading to a sharp drop in downstream operations. Most product manufacturers operated at around 50% capacity. Industries such as packaging, plastic pipes, films, beverage bottles, and building materials saw weak performance. Moreover, declining car sales and the EU's tire labeling regulations negatively impacted both internal and external demand for tires, further reducing the need for rubber materials.
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