Polyethylene market shocks upward price gradually raised

The majority believe that with the domestic epidemic under control, the market still has upside potential with the support of crude oil, and are more excited about the subsequent market.

In the first quarter of 2022, the polyethylene market oscillated upwards, with linear and low-pressure products rising to varying degrees and high-pressure highs falling back. In comparison, linear is affected by futures, the most violent fluctuations, high pressure because of relatively high prices, the trend is relatively weak, low-pressure products are slightly up, but the overall range of fluctuations than linear, high pressure significantly narrowed.

The market was in a state of flux in January, with prices gradually rising, during which the main advantages were that crude oil was continuously higher and the cost side of the market had some support; as the holidays approached, intermediaries and downstream replenished their positions in moderation; linear futures oscillated upwards, leading to high spot quotes.

The market trading stagnated during the Spring Festival, after the opening of the market rushed higher, but the lack of transaction support, in the linear futures afternoon under pressure, the market quickly pulled up and then slumped, the price level kept refreshing the low point to drive part of the demand reflected, the market stopped the rebound.

The main negative factors are, demand is not enough, after the Lantern Festival downstream start less than expected; domestic livelihood protection, inflation suppression futures performance is weak.

The beginning of March, crude oil continued to soar significantly, strong cost support, PE market rose, but the high price of demand to follow up weak, coupled with the resurgence of domestic epidemic, poor transport, demand is more sluggish, after the mid-March market high fall. Domestic petrochemicals in the high cost, profit shrinkage, losses, March production cuts or shutdown maintenance, coupled with the import window did not open, the import of resources on the low side, to support the market in late March to stop falling back to stability, tend to oscillation.

During the period, the main positive is that crude oil is high, the cost side of the market has support; part of the device overhaul or production cuts, import resources are low. The main negative factors were the lack of demand and the poor flow of resources due to the epidemic.