Import PE Rising Domestic Polyethylene Possibility of Rebound in Later Period

According to statistical data, the domestic PE output in March 2019 was about 14891,000 tons, an increase of 9.77% annually and 10.44% year-on-year. Among them, LDPE production increased by 2.28% annually, 1.88% annually, HDPE production increased by 17.41% annually, 27.39% annually, LLDPE production increased by 5.02% annually and decreased by 1.26% annually. Let's take a look at PE production in the first quarter of the year.

In the first quarter of 2019, domestic PE output was about 43264,000 tons, an increase of 7.74% over the same period last year. Among them, LDPE decreased by 2.63% compared with the same period last year, low pressure increased by 19.23% compared with the same period last year, and linear increased by 1.77% compared with the same period last year.

In the earlier period, we mentioned that the domestic PE plant will be scheduled to be overhauled in the second quarter. It is known that in the second quarter, except Yanshan Petrochemical Company and Lanzhou Petrochemical Company, most of the overhauls will be in the medium term. Therefore, the domestic supply side is expected to decrease and the good mentality of the manufacturers is good. But the current petrochemical inventory is still above 900,000 tons, and the task of inventory removal is still heavy. At present, the production of plastic film is still heavy. At the end of the season, agricultural film production has entered the off-season, and short-term domestic supply pressure is difficult to ease.

Although PE has a bumpy upward road due to demand constraints, crude oil and the surrounding environment are still acceptable, and driven by the rising price of imported PE, there is no lack of possibility of a rebound in the later stage of domestic PE.