According to the monitoring of the business club, this week (5.24-29) in East China, LLDPE, LDPE and HDPE all showed an upward trend, and the overall transaction atmosphere of the market was general. On May 29, the average ex factory price of LLDPE 7042 in East China was 6650.00 yuan / ton, 1.01% higher than that on May 24; the average ex factory price of LDPE 2426h was 7550.00 yuan / ton, 0.33% higher than that on May 24; the average ex factory price of HDPE 5000S was 7166.67 yuan / ton, 1.42% higher than that on May 24. The increase is mostly about 50-100 yuan / ton.
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On May 29, the LLDPE commodity index was 63.69, unchanged from yesterday, down 45.82% from 117.56 (2013-12-11), the highest point in the cycle, and up 10.84% from 57.46, the lowest point on April 06, 2020. (Note: cycle refers to 2011-09-01 to now)
The LDPE commodity index on May 29 was 58.75, unchanged from yesterday, 48.16% lower than 113.33 (2013-12-08), the highest point in the cycle, and 8.24% higher than 54.28, the lowest point on April 06, 2020. (Note: cycle refers to 2011-09-01 to now)
On May 29, the HDPE commodity index was 58.09, unchanged from yesterday, 43.23% lower than the highest point in the cycle, 102.33 (2014-07-24), and 6.70% higher than the lowest point, 54.44 on April 6, 2020. (Note: cycle refers to 2011-09-01 to now)
In this week’s (5.24-29), the market price of polyethylene rose slightly, with an increase of about 50-100 yuan / ton. Petrochemical enterprises continued to rise in part on Monday (25th), and recovered in late week. In the week, the high opening of linear futures rose, bringing some support to the spot market. Merchants’ mentality was stable, and most of them shipped with the market. In terms of supply, at present, during the peak maintenance season, there are many petrochemical parking and maintenance devices, some of which are under maintenance, such as Fujian united and Dushanzi Petrochemical. The market supply is reduced, the petrochemical inventory is down, and the price is relatively strong. However, at present, the polyethylene market is in the off-season of consumption, and affected by social and public health events, the downstream demand is weak, the demand side of terminal factories continues to be low, and the demand for replenishment is mostly on demand. The market transaction atmosphere is relatively light, which hinders the price rise of polyethylene.
The continuous rise of raw material ethylene market has brought good support to the polyethylene market. On May 27, WTI crude oil futures market prices in the United States fell sharply, and the settlement price of major contracts was 32.81 yuan / barrel, down $1.54 or 4.5%. Brent crude oil futures market prices fell sharply, with the settlement price of major contracts at $35.45/barrel, down $1.29 or 3.5%. The crude oil market fell sharply, which could not support the cost of ethylene. However, the continuous rise of ethylene price was affected by the previous rise of crude oil price, and the impact of the fall of crude oil on ethylene has not been shown for the time being.
Linear futures rose sharply in the week, boosting the spot market mentality. On Monday, May 25, the opening price of polyethylene futures l2009 was 6415, the highest price was 6530, the lowest price was 6415, the closing price was 6490, the former settlement price was 6455, the settlement price was 6470, up 35, or 0.54%, the volume was 323878, the position was 382452, and the daily position was 6034. (quotation unit: yuan / ton)
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On May 29 (Friday), the opening price of polyethylene futures l2009 was 6585, the highest price was 6615, the lowest price was 6515, the closing price was 6515, the former settlement price was 6515, and the settlement price was 6560, which was the same as that on May 28. The volume was 427849, the position was 377239, and the daily position was increased by – 30876. (quotation unit: yuan / ton)
In the 20th week of 2020 (5.18-5.22), there are 12 commodities in the list of commodity price rise and fall in rubber and plastic plate, including one commodity with a rise of more than 5%, accounting for 5.6% of the monitored commodities in the plate; the top three commodities are pet (5.38%), ABS (3.46%) and PVC (3.34%). There are two kinds of commodities falling on a month on month basis, and one kind of commodities falling by more than 5%, accounting for 5.6% of the number of commodities monitored in this sector; the top two products falling are PP (melt blown) (- 9.30%) and PA66 (- 0.78%). This week’s average was 0.94%.
In the future, it is currently in the peak maintenance season. There are many petrochemical equipment overhauls, and the market supply is reduced. In the later stage, the petrochemical inventory may fall, and the petrochemical factory price is relatively strong. However, in the face of traditional consumption off-season, and under the influence of public health events, the downstream is mostly replenished on demand, and the market transaction atmosphere continues to be depressed. Polyethylene is expected to rise in the short term with limited space, or continue consolidation.
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