Resin spot trading improved last week compared to the previous week, but that doesn't say much, as volume is well below the average weekly performance in the first quarter of 2020. Prices for all commercial grade resins continued to decline, with most polyethylene (PE) and polypropylene (PP) materials falling another cent. The plastic exchange said that the beginning of May would mark the first example of countries reopening their economies, and everyone was optimistic that they could soon return to normal and survive this devastating world event. Until then, the whole dealer community will continue to work hard to solve this problem and try to transfer its high cost inventory with the least loss. April's PE contract seemed to settle at $0.04 per pound, largely erasing gains in January. PP producers are struggling with a small drop in PGP costs in April, while trying to expand resin margins. The plastics exchange still expects PP contract prices to remain stable, with the best scenario being a small decline. In view of the general uncertainty and competitive quotations from other regions, it is very difficult to increase resin exports. However, it is reported that a large number of materials are still sold overseas directly or through several major exporting countries at a greatly discounted price. In the first half of this year, PE spot trading is still far from reaching the frenzied speed. The Plastics Exchange said it expects a more severe demand environment as the world continues to work through domestic orders. As processors seek a minimum supply and wait for cheaper materials and demand to improve, it is difficult to transfer large quantities of materials to the domestic market. Spot prices on the Chicago Plastics Exchange mostly fell 1 cent last week; the only resin that fell $0.02 per pound was film grade LDPE. According to the data, the contract price in April seems to be falling by $0.04/pound, and big buyers will soon start to deal with the price reduction in May. China seems to have passed the new crown crisis and has been buying materials to fill its inventory at a positive price. Traders in other regions have also been looking for hot selling resin deals from the US, as storage has become limited and domestic demand in the US is in trouble. The recent historic collapse in crude oil prices has largely eliminated the years long competitive cost advantage enjoyed by North American Natural Gas PE producers compared with international naphtha PE producers. This has created a very serious upstream situation, as the large-scale petrochemical capacity expansion established in the past few years is mainly for the export of resin. In addition to the huge coronavirus impact on global resin demand, it is easy to reduce the increased pounds of exports from North America, which may require a short-term quantitative supply of resin production; if the duration is long, it may lead to the shutdown of some cracking furnaces and reactors. As a whole, last week was a relatively good week for PP spot trading. The turnover of railway vehicles is more favorable than that of trucks; PP copolymer is the main driving factor. As many dealers sent their nationwide inventory lists to the trading desks of the plastic exchange, hoping that as low-cost rail cars began to hit the packaging line and reduce their positions, domestic supply in the United States remained adequate and truck supply kept pace. The April PGP is not yet settled, but is expected to decrease by 1 to 2 cents. PP producers, on the other hand, are trying to slightly increase their profit margins by keeping the contract price unchanged. Some limited profit expansion is meaningful given the low inventory levels, but it is a tough battle for US producers, the Plastics Exchange said. This article is translated by China Plastics online. If you need to reprint it, please indicate the source, otherwise it will be deemed as infringement.