In February, with the Spring Festival, the PE market changed its downward trend in previous years and set off a “fireworks” in Spring Festival. In February, the three kinds of PE spot rose from the beginning of the month to the end of the month. Although the fluctuation range of PE spot market before the festival was not obvious, it was mainly a small rise. After the festival, the PE spot market rose rapidly. With the full resumption of the market, futures joined hands with the spot market and started to rise immediately. Throughout February, there are many bright spots in PE market.
According to the data monitoring of business news agency, the average ex factory price of LLDPE (7042) in East China was 7983.33 yuan / ton on February 1 and 9000.00 yuan / ton on February 28, with an increase of 12.73% during the period, up 14.16% compared with February 1.
According to the data monitoring of the business association, the average ex factory price of LDPE (2426h) in East China was 10787.50 yuan / ton on February 1, and 12075.00 yuan / ton on February 28, with an increase of 11.94% during the period, up 8.54% from January 1.
According to the data monitoring of the business association, the average ex factory price of HDPE (5000S) in East China was 8166.67 yuan / ton on February 1, and 9216.67 yuan / ton on February 28, with an increase of 12.86% over January 1.
PE market in February can be divided into two stages before and after the festival. Before the festival, the three major spot varieties rose steadily, and the ex factory prices were increased on the 1st of the month and the 7th before the holiday. In East China, LLDPE increased by 200 yuan / ton, HDPE increased by 250 yuan / ton, and LDPE increased by 150 yuan / ton. Due to the limited market favorable factors, the rise rate was not large. Before the festival, the rise of international crude oil and the obvious rise of futures brought good support to the market. Petrochemical enterprises slightly increase the ex factory price, the cost support is acceptable, the business mentality is good, and the tentative high report. On the demand side, near the Spring Festival holiday, downstream enterprises have the intention to prepare goods before the festival, the enthusiasm to enter the market is good, the mentality of manufacturers is relatively strong, and the three kinds of spot products are stable and upward.
With the end of the holiday, the rise of PE spot market after the festival has become the main tone, and the large petrochemical plants have continuously raised their ex factory quotations, with high prices coming out frequently. As of February 26, compared with before the festival, HDPE in East China has increased by about 700-950 yuan / ton; LLDPE in East China has increased by about 950 yuan / ton; LDPE has increased by about 1150 yuan / ton, and the three spot varieties have increased by more than 10% after the festival. First of all, international crude oil rose sharply during the Spring Festival holiday. Since February, WTI has increased by 18.14% and Brent has increased by 17.15%. The cost support of PE market is strong. Second, the futures market, after the festival on February 18, the one-day rise is a new high in recent years, but also to the spot market has brought obvious positive. Thirdly, some petrochemical enterprises in the United States stopped production. Affected by the extreme cold weather in the United States, the local refining and related chemical production units were operating, and the chemical production was paralyzed. The leading chemical production slowed down, and the delivery delay aggravated the shortage worry in the market. Many products in the plasticizing market soared. Under the multiple favorable conditions, the mentality of the manufacturers is firm. Petrochemical enterprises have increased their ex factory quotations by a large margin in succession. The cost of taking goods by traders has risen. The offer has followed the upward trend, and the firm offer has focused on a single discussion.
Upstream ethylene market, the rise of external ethylene market in February brought some support to PE market. In February, the ethylene market in Europe, America and Asia showed a rising trend. Generally speaking, the trading atmosphere of the whole ethylene external market was active recently, and the market continued to rise, especially in the United States. As of the 22nd, the price was 1035-1047 US dollars / ton, with a gratifying rise.
In February, Liansu futures rose significantly, with a rise rate of 8.06% on February 18, and the one-day rise was the highest in recent years, bringing obvious support to the spot market. On February 26, the opening price of polyethylene futures 2105 was 8905, the highest price was 9000, the lowest price was 8720, the closing price was 8885, the former settlement price was 8875, the settlement price was 8860, up 10, or 0.11%, the trading volume was 588458, the position was 323330, and the daily increase was – 13613. (quotation unit: yuan / ton)
In February, the atmosphere of PE market is strong, especially after the festival. However, due to the incomplete construction of downstream plants, limited terminal demand and general enthusiasm for downstream market entry, the three PE spot markets have stabilized at the end of this month. In March, with the downstream enterprises starting work one after another and the arrival of the peak season of plastic film, the market demand is expected to be better. However, the inventory of petrochemical enterprises increased on a month on month basis, and a new unit was planned to be put into operation in March. PE market is expected to rise in March.