Crude oil, WTI crude oil fell more than 4%, including crude oil below the $80 mark, a new low since January 4 this year, while US oil directly fell below the year’s low; As of press release, in early December, under the condition that many new production units are put into production, the inventory of production enterprises is still similar to the same period last year, benefiting the market; But the demand end of the comprehensive performance is not good, the start of 0.22% month-on-month decline, restrain the price rise of polyethylene, downstream demand continued to weaken, polyethylene spot trend fell.
The launch of the new regulations on epidemic prevention policy and the cancellation of landing inspection are good for logistics and transportation, but the peak season for polyethylene downstream demand has passed, and the downstream factories may have a holiday in advance, which will continue to pressure the price of polyethylene. With the decline of the plate price, the production enterprises will reduce the factory price, and there are still new devices put into production at the end of the month, the polyethylene market is expected to show a downward trend next week under the weak supply and demand.
Recent polyethylene market focus:
1. At present, the epidemic prevention policy is gradually relaxed. With the decline of raw material prices in the middle and late December, whether the polyethylene terminal factory is stocked in advance?
2. In terms of supply, Guangdong Petrochemical, Hainan Refining, Jinhai Chemical and other 7 sets of new devices involving 2.5 million tons/annual capacity are scheduled to be put into production in December. If they are successfully put into production, it will be negative for the market.
3. The construction of polyethylene downstream shed film continues to decline, the orders of plastic film enter stable, there are no new bidding orders, the packaging film is affected by health events, the express industry is weak, the demand is weakened, the pipe is in the seasonal characteristics, the operating rate falls, negative market.
Post time: Dec-10-2022