PE Morning Tip: Expected Price Fluctuation With Weak Trend

I. Focus Points

1 Cost side: The instability of the Russia-Ukraine situation still exists, and the U.S. sanctions against certain oil-producing countries may escalate, leading to a rise in international oil prices. NYMEX crude oil futures for the November contract rose by $1.13 per barrel to $63.41, an increase of 1.81% month-on-month; ICE Brent crude futures for the November contract rose by $1.06 per barrel to $67.63, an increase of 1.59% month-on-month. 。

2 Current parking device: Currently, 27 polyethylene units are involved in shutdowns, and there are no new units under maintenance.

3 Market Review of Yesterday: On the previous day, the domestic polyethylene market saw most prices decline, with a range of 1-18 yuan/ton. Cost support weakened, and supply-demand conflicts still existed. Traders continued to offer discounts to promote transactions, leading to a poor market atmosphere.

Core logic: Macro has no positive guidance at the moment.   Price weakness continues.

II. Price List

3. Market Outlook

The new equipment is about to be put into operation, with an expected increase in supply; downstream operations are improving, but market sentiment is heavily cautious. There are no favorable macroeconomic indicators, so the focus returns to the fundamentals, leading to a price trend that is volatile and slightly weak.

IV. Data Calendar