On January 17, the LLDPE Commodity Index was unchanged from yesterday at 70.39, down 40.12% from the cycle high of 117.56 (December 11, 2013) and up 0.69% from the September 8, 2019 low of 69.91. (Note: The period is from September 1, 2011 to the present)

On Jan. 17, the LDPE Commodity Index stood at 62.74, up 0.19 points from yesterday's high of 113.33 (2013-12-08), down 44.64%, and up 0.63% from the low of 62.35 on Jan. September 12, 2020 . (Note: The time period is from September 1, 2011 to the present)

On January 17, the HDPE Commodity Index touched a cycle historical low of 63.36, unchanged from yesterday and down 38.08% from its July 24, 2014 high of 102.33. (Note: The period is from September 1, 2011 to present)

This week (January 13th to 17th) polyethylene ex-factory prices were in a sideways trend. The average price of LDPE 2426H monitored by enterprise agencies in East China was about RMB 8062.5/ton. HDPE 5000S average price is about 7816.67 yuan / ton. Which LLDPE. 7042 average price of about 7350 yuan / ton.

As of January 17, LLDPE and HDPE prices in East China were stable this week.LDPE prices continued to rise this week. Although the ex-factory prices of petrochemical products did not change significantly, the overall price fluctuations in the PE market, most of the prices rose 50-200 yuan / ton.

At the beginning of the week, linear futures continued to oscillate, market sentiment was high, and franchise prices rose. However, futures prices continued to fall on Tuesday, dampening some downstream market enthusiasm. With the weakening trend of international crude oil, traders gave up some of their profits to resell their products. The Lunar New Year holiday is approaching and downstream factories are gradually taking a vacation. The overall trading sentiment in the market was dampened by weak end demand.

In terms of import and export, in November 2019, PE imports totaled 1,456,300 tons. Among them, LLDPE imports were 451,900 tons, HDPE imports were 708,600 tons, and LDPE imports were 295,800 tons.

In November 2019, PE exports totaled 25,900 tons. Among them, LDPE exported 73,300 tons, HDPE exported 15,300 tons and LLDPE exported 33,300 tons.

Summary

Currently, the Lunar New Year holiday is approaching. Downstream factories are also gradually entering the vacation mode. Demand will gradually decrease. Merchants' shipments are blocked, and the market wait-and-see atmosphere continues.

Inventories of petrochemical products dropped to a lower level, easing supply-side pressure.

In the short term, the weakness is expected to continue with a sideways trend.

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