Markets reopened fully after the Lunar New Year holiday. The PE market started to rise and the futures market was up overall. Even after the holiday, petrochemical plants continued to raise their asking prices and frequently issued high prices. Compared with the pre-holiday period, HDPE in East China rose about 700-750 yuan per ton, and LLDPE East China rose about 700-1000 yuan per ton. Just a few days after the end of the holiday, the three major spot varieties have risen about 10%. The futures market rose more than 8% in a single day, a record high in recent years.

According to the top degree of data monitoring, February 17 domestic LLDPE (7042) average ex-factory price of 8016.67 yuan / ton, February 23 for 8800.00 yuan / ton, compared with February 1 rose 9.77%, 10.23%. East China LDPE (2426H) ex-works average price was RMB 10837.50/mt, the price was RMB 11825.00/mt on Feb 17th and RMB 11825.00/mt on Feb 23rd, up 9.11% and 9.62%. On February 1 and February 17, the average ex-works price of HDPE (5000S) in East China was RMB 826.67/mt. The price on February 23 was 9016.67 yuan / ton, up 9.07% and 10.41% from February 1st.

Near the end of the festival, PE spot market rose steadily, and petrochemical companies continued to raise ex-factory prices. The biggest reason for the surge in oil prices is the international oil prices. During the Spring Festival, international crude oil prices rose sharply, bringing real benefits to the market. Secondly, in the plastics futures market, prices in the joint plastics market continued to rise, bringing obvious profits to the spot market. This means that due to the lack of domestic petrochemical inventories, some U.S. petrochemical companies shut down production, and manufacturers are in a firm frame of mind.

Currently, among the three major PE spot markets, the growth rate of LLDPE and LDPE has declined, but the growth rate of HDPE is still strong. Due to the lack of inventory in PE pipe terminal factories before the holiday, and the resumption of work after the holiday, the downstream replenishment demand is strong. However, the PE market has risen so fast that it has led to a strong cottage industry atmosphere in the current market. On February 23rd, Lysol futures showed a pullback. the risk of PE short-term decline. However, on the demand side, terminal companies have not yet fully taken off. In the second half of the year, as downstream enterprises start work and the peak season approaches, market demand is expected to improve. In the long run, China's PE market is still on an upward trend.

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