Today (31), the domestic PE market as a whole continued to fall.LLDPE in the East China market, in the LDPE fell sharply at the same time, the East China market HDPE temporarily stabilized. The overall market trading atmosphere is unlikely to improve. As of March 31, the average price of LLDPE 7042 ex-factory in East China was RMB 6100 per ton, down 3.68% from the previous day.The average price of LDPE 2426H ex-factory in East China was around RMB 7,050 per ton, down 4.24% from the previous trading day. HDPE 5000S ex-works average price in East China was RMB 6,816.67/mt, more stable than the previous trading day. LLDPE and LDPE fell 200-400 yuan/ton.

On March 31, international crude oil prices continued to fall, plastic futures prices fell for several days. Market sentiment is low. The overall sentiment of the PE market is unlikely to improve. On March 31, prices were still mainly down, with petrochemical companies in major areas falling by about 200 to 400 yuan per ton. Market cost support continued to weaken. Merchants continued to be pessimistic, giving up good news to increase deliveries. Downstream demand is low and purchase orders are few. The market has not improved much and we are watching carefully as some mills are replenishing their positions as needed. For now, market sentiment continues to be weak.

On March 31, polyethylene futures L2005 opened at 5430, with a high of 5680, a low of 5430, and closed at 5565, with a pre-settlement price of 5445 and a settlement price of 5550 lots, up 120 points. Volume growth of 2.2%, turnover of 321,784 hands, positions 113,428 hands, the daily increase of 333,542,413 hands (quoted in yuan / ton).

The total PE export volume from January to February 2020 was 35,100 tons. Among them, LDPE export volume of 10.8 thousand tons, HDPE export volume of 20.7 thousand tons. LLDPE exported 360,000 tons. January-February PE imports of 2.365 million tons. LLDPE imports were 440,500 tons. HDPE imports 1.1356 million tons, LDPE imports 78.89 million tons.

As of February 27, the total output of domestic polyethylene enterprises was 1.41 million tons, a decrease of 252,300 tons from January. HDPE production of 578,900 tons, LDPE production of 206,800 tons, LLDPE production of 624,300 tons.

Market forecast: International crude oil prices plummeted, futures prices plummeted, and market sentiment was low. Due to the special circumstances, downstream demand also reduced, most of the petrochemical industry continues to significantly reduce the ex-factory price. Market cost support weakened, downstream wait-and-see attitude continued. Factories only need to import commodities and the market trading atmosphere is difficult to improve. The trend is expected to remain bearish in the near future.

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