New Plant to Start Production Soon: Analysis of LLDPE Price Trends
Introduction: In February, the LLDPE market experienced a weak consolidation, with supply recovering to a relatively high level and ample spot inventory. The pressure was gradually transmitted, leading to weaker market transactions. What new changes will the LLDPE market see as we enter March?
1. Analysis of LLDPE Market Price Trends
From the LLDPE price trend chart, it can be seen that since February, the domestic LLDPE spot market prices first fell and then rose. Analyzing the entire month, the melt index 2 film material decreased by 379 yuan/ton, a drop of 4.35%, while the melt index 1 film material decreased by 210 yuan/ton, the rotational molding material decreased by 82 yuan/ton, and the injection molding material decreased by 139 yuan/ton.
Due to the closure of downstream factories during the month, the market did not avoid the risk of inventory buildup, and the inventory in social sample warehouses continued to rise, causing market prices to fall. After the holiday, although inventory pressure increased, the previously planned production facilities did not come online as scheduled, and there were also favorable macroeconomic supports, leading to improved market sentiment. Additionally, the small peak season for mulch films arrived, and as the operating rates of downstream industries increased, market prices gradually recovered, though the overall price center still needs time to adjust.
2. New LLDPE Facilities Expected to Start Production
Entering March, the third phase of Inner Mongolia Baofeng, Shandong New Era, and ExxonMobil (Huizhou) LLDPE facilities are expected to start production in the latter half of the month. Meanwhile, Yulong Petrochemical, Pucheng Clean Energy, and Zhongan United have more maintenance plans, and imports are expected to decrease, indicating that although there is supply pressure, the increase is limited.
3. Limited Follow-up of Agricultural Film Orders: Can the "Small Peak Season" Be Realized?
In February, enterprises gradually resumed production, and demand for mulch films entered a peak season. Mulch film companies were the first to resume work and production, with a significant increase in operating rates, especially in the northwest and southwest regions, where the demand for mulch films
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