According to the monitoring of the commodity market analysis system of Shengyi Society, the average price of LLDPE (7042) was 8430 yuan/ton on February 1st and 8246 yuan/ton on February 26th, with a price drop of 2.17% during this period. LDPE (2426H) had an average price of 9950 yuan/ton on February 1st and 10133 yuan/ton on February 26th, with a price increase of 1.84% during this period. HDPE (2426H) had an average price of 8400 yuan/ton on February 1st and 8387 yuan/ton on February 26th, with a price drop of 0.15% during this period.
The trend of polyethylene market in February is different, with weak linear product trend, strong high-pressure product trend, and narrow adjustment of low-pressure product trend, with little change. The pressure on the supply side is still present. In the early stage, new production capacity was steadily added, and plastic companies resumed work and production after the holiday. There are expectations of an increase in the market. In addition, there were fewer polyethylene maintenance units in February, but some high-pressure product units were converted and shut down, resulting in a tentative increase in high-pressure product prices. The trends are different, and the prices are relatively strong. In late February to March, spring plastic film enters the traditional peak season, and orders continue to accumulate. However, the demand for greenhouse film enters the off-season, and there is insufficient market order follow-up. The upcoming National People’s Congress and the Chinese People’s Political Consultative Conference are expected to boost demand in the commodity market, with a relatively warm macro outlook. The weak economic data in Europe and the United States has intensified market concerns about energy demand. In addition, the expectation of increased production in some oil producing countries is bearish on the market. Recently, the cost side has loosened significantly, which is bearish on the polyethylene market.
The inventory pressure on the supply side is still ongoing, and the demand for plastic film is gradually entering the peak season, which may provide some support. Against the backdrop of a double increase in supply and demand, it is expected that the upward space for polyethylene will be limited and the change will not be significant.
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