At the end of the Spring Festival holiday, with the full resumption of the market, the PE market started to rise, and the futures market and the spot market rose broadly. After the holiday, the petrochemical plants continuously increased the ex factory quotation, and the high price came out frequently. Compared with before the festival, the increase of HDPE in East China is about 700-750 RMB/ ton; the increase of LLDPE in East China is about 700 RMB/ ton; the increase of LDPE in East China is about 900-1,000 RMB/ ton. Just a few days after the festival, the three major spot varieties have increased by about 10%. The futures market rose by more than 8% in a single day, which is a new high in recent years.

According to the data monitoring of toodudu, the average ex factory price of LLDPE (7042) in East China was 8,016.67 RMB/ ton on February 17, and 8,800.00 RMB/ ton on February 23, with an increase of 9.77% and 10.23% compared with February 1. The average ex factory price of LDPE (2426H) in East China was 10,837.50 RMB/ ton on February 17 and 11,825.00 RMB/ ton on February 23, with an increase of 9.11% and 9.62% compared with February 1. The average ex-factory price of HDPE (5000S) in East China was 8,266.67 RMB/ ton on February 17 and 9,016.67 RMB/ ton on February 23, up 9.07% and 10.41% compared with February 1.

At the end of the holiday, PE spot market rose as the main tone, and petrochemical enterprises continuously raised ex factory quotations. The main reason for the sharp rise is the international crude oil. During the Spring Festival holiday, the international crude oil rose sharply, which brought obvious benefits to the market. Secondly, in terms of plastic futures market, the opening price of Liansu continued to rise, which brought obvious benefits to the spot market. Domestic petrochemical inventory is low, and some petrochemical enterprises in the United States stop production, so the manufacturers have a strong mentality.

The current PE spot three markets, LLDPE and LDPE or narrowed, but HDPE or is still strong. Due to the shortage of PE pipe terminal factory stock before the festival, with the resumption of work after the festival, the demand for downstream replenishment is relatively strong. However, the PE market is rising too fast this time, and the current market has a strong atmosphere of copying. On February 23, Liansu futures has been callback. In the short term, PE may have the risk of falling. However, in terms of demand, the current terminal enterprises are not fully started. In the later stage, with the downstream enterprises starting in succession, the peak season is coming, and the market demand is expected to be better. In the long run, China PE market is still rising.

If you have any questions, please feel free to contact toodudu with tdd-global@toodudu.com.