Olympic economy after the start of degradable plastic material industry
According to the relevant officials of the catering Department of the Beijing Organizing Committee for the Olympic Games, Beijing will be responsible for the catering of 31 competition venues, 43 training venues, 13 non competition venues, 6 provincial market venues and the Olympic Village during the Olympic Games, as well as the breakfast of 108 contracted hotels. During the Olympic Games, the audience is expected to reach 7million per day alone, and the demand for disposable tableware is quite large. The Olympic Games represents the national image and is the real market that is most likely to take the lead in demonstrating the application of biodegradable products. The impact of its environmental protection concept on the public is an incalculable wealth.
It is understood that more than 10000 tons of garbage will be produced during the Beijing Olympic Games, including 4% of plastic garbage. If traditional non recyclable plastic products are used, it will cause a great burden on the environment. To this end, after global bidding and procurement, the relevant institutions of the Beijing Olympic Games officially signed a contract with Nanjing biaoge company on July 8. The 5.7 million garbage bags required by the Olympic venues and the Olympic village all use the company's fully biodegradable plastic bags. This plastic bag uses corn starch as raw material, which can be naturally decomposed into carbon dioxide and water within 72 days after being discarded, and will not cause any pollution to the environment. In addition, during the Olympic Games, biodegradable plastic tableware will be selectively used in centralized dining places, while biodegradable plastic tableware will be used in all places where disposable tableware is used, and biodegradable plastic products will be used in all garbage bags. At the same time, about 100000 temporary plastic seats required for the Olympic venues will also be made of biodegradable plastics.
Biodegradable plastics have been successfully used in many Olympic Games and large international expositions. Among them, environmental friendly ecological plastics have been widely used in the 2000 Sydney Olympic Games, which has promoted the industrialization of ecological materials in Australia. Biodegradable plastics have also been used in the 2002 Winter Olympics in Salt Lake City, the 2005 World Expo in Japan and the 2006 Winter Olympics in Turin, Italy.
Beijing Olympic Games, as a demonstration site that is most likely to take the lead in the large-scale application of biodegradable materials and products in China, is of great significance to leading the consumption concept of green and environmental protection. Biodegradable materials products such as plastic bags, disposable lunch boxes and temporary plastic tables and chairs will be widely used in the Beijing Olympic Games, which has greatly stimulated the market enthusiasm of the biodegradable materials industry.
However, many enterprises in the industry report that compared with the short-term "feast" of the degradable material market of the Olympic Games, enterprises pay more attention to the "Post Olympic" economic effect, and the expected sustained and stable growth of the biodegradable material industry driven by the huge demonstration and publicity effect of the Olympic Games. Pan Weizhi, special assistant to the chairman of Taiwan Ruiqi company, said that many enterprises producing biodegradable products did not expect to make money at the Olympic Games, but wanted to take the opportunity of the Olympic Games and the Shanghai WorldExpo to make the public aware of the excellent performance and environmental protection advantages of biodegradable materials. In this way, enterprises will have future economic benefits in China. Dr. chengguoren, chairman of Beijing hannuo science and Technology Innovation Co., Ltd., is more interested in the "Post Olympic" economy. He believes that through the opportunity of the Green Olympics, biodegradable products can be truly used in many fields such as agriculture, industry, textile industry and so on. After the Olympic Games, many enterprises can vigorously develop products related to biodegradable products and enter the lives of ordinary people. For example, bio plastic pencil boxes, starch biodegradable splicing and clipping children's toys, etc. Objects with this characteristic will not be harmful to children.
LLDPE still maintained a volatile downward pattern this week. On Monday, boosted by the NYMEX crude oil futures closing up $1.02 last week, the opening market rose rapidly. However, when it was close to the 5-day moving average, it was suppressed and maintained shock consolidation. The intraday trading was light, and the position continued to shrink. At the end of the day, it closed up slightly by 45 yuan. On Tuesday, LLDPE was dragged down by crude oil futures falling by $3.69, jumping short and opening low, with a sharp drop of 385 yuan. Although the overnight crude oil continued to fall on Wednesday, LLDPE opened abnormally and quickly higher, but the good time did not last long. After all, some gains were reversed under the drag of crude oil, and it closed up at 280 yuan at the end of the day. LLDPE returned to the decline on Thursday, falling sharply by 310 yuan, once hitting a new low of 12410 yuan. Although the overnight crude oil rebounded on Friday, LLDPE's response was flat, basically maintaining a narrow range of fluctuations, and the trading was extremely flat. However, near the end of the afternoon, driven by bulls, it rose rapidly, and finally closed up by 260 yuan, recovering yesterday's decline.
Crude oil fluctuated sharply this week, falling sharply in a row. On Monday, the survey showed that OPEC's oil output in July was likely to rise for the third consecutive month, and the rise of core inflation in the United States was greater than expected, triggering concerns about oil demand, causing crude oil futures to fall by $3.69, falling below $120 / barrel to $119.60 / barrel at one point in the session. Weather conditions have always been one of the factors affecting crude oil prices. On Tuesday, as tropical storm Edouard has moved closer to the inland of the Gulf of Mexico, and the oil facilities in the Gulf of Mexico have begun to return to normal operation, NYMEX crude oil futures fell again by $2.24 to $119.17 / barrel. On Wednesday, it continued to fall for the third consecutive day, mainly because the previous Reuters survey estimated that the increase of crude oil inventory was 300000 barrels, but in fact, the data released by the EIA showed that it increased by 1.7 million barrels, more than five times higher than expected. At the same time, as the summer driving season is coming to an end, the market is expected that the consumption of gasoline will not rise significantly. This week, due to the fire of the Turkish oil pipeline, which connects the oil fields in the Caspian Sea of Azerbaijan, the crude oil transportation to western countries will be stagnant. Therefore, NYMEX crude oil futures rebounded by $1.44, returning to above $120 / barrel. On Friday, NYMEX crude oil futures staged another high dive, falling sharply by $4.82 to $115.20 / barrel, during which it once hit a new low of $114.64 / barrel. Due to the strength of the US dollar and the slowdown of European and Asian economies, fuel development investors are worried about the decline in demand for oil.
Crude oil fell sharply this week, hitting record lows. At the close of trading on Friday, WTI was at $120.02 / barrel, down $4.06 from last Friday; Brent closed at $117.86 per barrel on Friday, down $6.12 per barrel from last Friday.
The closing price of Asian ethylene fell sharply on Thursday. CFR Northeast Asia fell $40 to $1450-1460 / ton, and CFR Southeast Asia fell $50 to $1400-1410 / ton.
The spot market of LLDPE continues to maintain a downward trend. Sinopec introduced the turnover settlement price for the first time since the unified marketing, and significantly reduced it by 400-1100 yuan / ton. At the same time, it continued to list at the same or similar price as the settlement price. Generally speaking, from the main markets around the country, Sinopec introduced the turnover settlement price to achieve the expected effect, and Sinopec inventory has not been improved, so that the supply side is still very sufficient. For the downstream industry, the biggest power shortage in the past 10 years and the Olympic Games have greatly affected the downstream demand for raw materials, causing many manufacturers to stop production and limit production. However, this move also has a positive side. The turnover range of Sinopec has brought a certain degree of confidence to the market, which will make the original concerns better. Although traders still take a cautious wait-and-see attitude, there are also downstream factories taking goods tentatively. The price adjustment of PetroChina followed closely, and now the prices of the two major petrochemicals are basically flat.
Technically, LLDPE has always fluctuated downward between the 5-day moving average and Brin's off track. The upper part is obviously suppressed by the 5-day moving average, and the lower part is obviously supported at the lower rail of brin.
Outlook for next week
Fundamentals are still short, and it is expected that the future market will maintain a weak downward trend without the stimulation of good news.
Suggestion: wait and see for the end of the adjustment, or short positions in the early stage can continue to hold.