In January, the performance of domestic PE market was stalemate with low volatility of petrochemical stocks. However, it is difficult for the price to continue to increase. In January, during the conversation with the market agents, there was a general feedback that the market demand was light and the price fluctuation was hard to stimulate the market demand. There are three main reasons: First, the terminal factory orders less; Second, the funding side of the tight; Third, the market is difficult to expect strong.
From late January to late January, a large area of domestic snowfall brought even more coolness to the light market. Some merchants in the East China market said that from last week some local stretch film factories have had holidays. It is estimated that in early February, Stretch film factory will start a wide range of holiday.With the terminal small and medium-sized factories in advance of the holiday news, market logistics or earlier holiday news in previous years have also come, if the next week long-term logistics and downstream factories gradually leave, then leave the terminal Stocking time may be concentrated in this week, but on Monday, the terminal store atmosphere is still very light, some businesses said the transaction was almost zero on the day.
For the domestic market supply and demand in February point of view, the domestic parking maintenance device is small, the upstream supply is still adequate, and the terminal part of the factory holiday, then the market supply will be mainly concentrated in the hedging and merchants trading between .At the present moment, Futures disk drive enthusiasm is limited, and traders put the cautious high-priced trading, low-priced hard to find, so the market or remain in a stalemate for the inventory, if the overall pre-holiday trading weakened the atmosphere, social stock or continue increase.
For the international supply and inventory point of view, through the import data in recent years reflects the general domestic during the traditional Spring Festival will significantly reduce the volume of PE imports, but 1-2 months after the Festival imports will reach the year high level from the PE port Stock trend point of view, in January, the domestic PE port inventories have risen to the same period in nearly three years, mid-January 2018, PE port stocks of about 310,000 tons, while the same period in 2017 was about 250,000 tons in 2016 The same period, about 250,000 tons.Even despite the decrease in imports in February, but demand weakened at the same time, the pressure on the port inventory still exist.
On the whole, petrochemical plastic stocks and port inventories still face some pressure before and after the Spring Festival. Coupled with the tight capital supply, the demand for mid- and low-end factories is weak and the market is still hard to have a strong trend in the short term.