The Pressure On Polyolefins Has Eased, And Downstream Construction And Orders Have Begun To Improve

In terms of PE supply, petrochemical temporary parking devices increased this week, and the maintenance loss increased by 86.46% compared with the previous cycle. From the perspective of next week, there are many parking devices in PE petrochemical, and the supply pressure continues to ease.

In terms of demand, the operating rate of PE downstream industries this week was 32.7%, up 7.2% from last week. Specifically, the operating rates of agricultural films, pipes, packaging films, hollow and injection molding all increased, with the hollow operating rate increasing the most, up 22% from the previous cycle. However, due to the weather and the Winter Olympics, plastic film orders were greatly affected. According to estimates, the downstream may usher in a full resumption of work in early March, and the subsequent downstream construction and orders will gradually improve.

In terms of PP supply, the domestic PP petrochemical maintenance loss was 26,400 tons, an increase of 3.99% from last week. There is no new production capacity next week, but there are many new maintenance devices during the week, and the supply is expected to be slightly reduced next week.

On the demand side, due to the recovery of infrastructure and other demand, the demand for PP is expected to be relatively better than that of PE. However, in this survey, it was found that the pace of resumption of work and production in downstream factories in Fujian was slower than expected, and employees in southern China generally returned to work later. At present, the bearish sentiment in the downstream is relatively heavy. In addition, the new orders are limited, and the downstream is basically just in need of purchases. It is difficult to have obvious support for the market without speculative replenishment.