Price Trends

According to Todudu data monitoring, the average price of domestic LLDPE price (7042) was RMB 8,447 per ton on February 1, and RMB 8,332 per ton on February 28, down 1.35% year-on-year, and down 0.71% from January 1, according to Todudu data monitoring.

According to the monitoring of TuoDu data, the average price of LDPE (2426H) ex-factory on February 1 was RMB 9216/ton, and RMB 9070/ton on February 28, down 1.59% during the period, and down 0.33% compared with the offer on January 1 .

img src='https://file.tdd-global.com/posts/ldpf2/ya10cev1fz.png'/

According to the monitoring of TuoDu data, the average ex-works price of HDPE (5000S) was RMB 8,566/mt on February 1 and RMB 8,500/mt on February 28, down 0.78% year-on-year and up 0.39% compared with that of January 1, according to the monitoring of TuoDu data.

Analytical Review /strong

In February this year, domestic PE prices were mainly weaker. LLDPE continued to fall in the first half of the month, the second half of the month appeared mutually. LDPE prices were basically stable in the first half of the month, and repeatedly rose and fell in the second half of the month. The first half of the year showed a large upward trend, the second half of the year mainly stabilized.

Hainan Refining, Guangdong Petrochemical has been put into operation, the operation is in order, the overall market supply is still loose. Since the beginning of February, the operating rate of downstream enterprises has been rising, mainly to de-stock. Market buying sentiment is low and orders are limited. Traders are facing huge inventory pressure and offers are falling. March is the traditional peak season. Orders are expected to increase as the utilization rate of plastic downstream products such as agricultural films and packaging films increases.

Market Outlook

Although the domestic PE market is well supplied, the recovery of PE market demand after the Spring Festival is weaker than expected. March is the traditional peak season, market demand is expected to be optimistic. P/E ratio is expected to rise, but the upside is limited.

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