1.This Month's Hot Topics

1) In March, domestic polyethylene production increased by 7.12% to 2.7503 million tons.

In March, China's polyethylene social sample warehouse inventory decreased by 2.69% to 618,700 tons.

2. Market Analysis for This Month

Monthly Price Fluctuation Table of Polyethylene Market in China

Unit: Yuan/Ton

3Domestically, polyethylene prices fell last month. The commissioning of two new production lines increased monthly output by 7.12% to 2.7503 million tons; social sample inventory decreased slightly by 2.69% to 0.6187 million tons. Downstream industries.The operating rate increased by 14% to 37%. The agricultural film and packaging film markets were mainly driven by rigid demand and short-term contract orders, with limited support from the demand side due to low-price purchases. Overall, the supply-demand margin was weak in March, leading to a decline in polyethylene prices. By the end of the month, the average monthly price of mainstream LLDPE film in North China was 7,940 yuan/ton, down 1.08% month-on-month.

3.Next Month's Market Forecast

The domestic PE market price in April is expected to decline.Shandong New EraThe commissioning of 700,000 tons of production capacity is expected to increase domestic total output by 0.29% to 2.7582 million tons. On the import side, a reduction of 7.61% to 1.1467 million tons is anticipated, easing pressure on the supply side. However, demand is expected to decline by 9% month-on-month in the agricultural film sector in April, while the packaging film sector is projected to rise by 4.85% month-on-month. Overall, downstream operating demand has been somewhat restrained, showing relatively average performance. In summary, while the supply side of the polyethylene market may see some support in April, upward movement will be constrained by weak demand. The average price of LLDPE in the North China market is forecasted to be 7,850 yuan/ton in April, 7,820 yuan/ton in May, and 7,800 yuan/ton in June.