Polyethylene Quotes Expected Poor in June

In May 2018, domestic Jilin Petrochemical, Shenyang Chemicals, Zhenhai Refinery, Sichuan ethylene and other equipment overhaul, Yanshan Petrochemical old high pressure, Lanzhou petrochemical high pressure, Zhongtian Hechuang LD251 production line failed to stop, extended China Coal plans to park at the end of May, leading to Some of the liquidity resources were tight. In early May, the market was firm and the price center continued to move upwards, but the demand gradually shrank. The high-end price transaction was sluggish, the domestic linearity and high pressure gradually declined, and the low-voltage products were relatively stable. Due to the low production capacity of high-voltage, nearly two years Energy expansion has a greater impact on the market. Although the current price is even lower than the linear one, the downstream use of high pressure has increased, but the overall impact has not changed significantly.

For the June market, the three bad, let the market mentality universal deviation.

First, the domestic overhaul devices started one after another, domestic supply increased, and the Jilin Petrochemical linear device stopped on May 8. It plans to drive on June 14th, and low pressure on May 11th. It plans to drive on June 14. Shenyang Chemicals Co., Ltd. May 3rd Overhaul for 55 days, Lanzhou Petrochemical high pressure from May 17 failed to stop, choose to drive on June 15th. Zhongtian Hechuang LD251 production line from May 19 from the lack of a week, linear device May 25 to June 9 parking. Sichuan ethylene full-density and low-pressure equipment was shut down for maintenance for two months starting from April 8. Zhenhai Refinery was overhauled from April 27th to June 8th. Shanghai Petrochemical 1: PE5 will be shut down for maintenance on October 10th. It is expected to drive on August 1st. ;2: The PE device 6,7 is stopped for the whole month in two months. CNOOC Huizhou officially opened in May. Extend Shenneng Chemical's additional 450,000 tons of low-voltage equipment plans to start production by the end of June.

Second, imported resources are being digested slowly. In the early stages, the smooth supply has attracted more resources. Domestic demand has been dull. Port stocks have been digested slowly. There is downward pressure on the stock market. Linearity dominates. However, due to the high cost of the previous futures, the overall price is unlikely to appear. Sharply slide.

3. Expected poor demand. In June, each product was still in the off-season demand, and domestically entering the wheat harvest season around the Dragon Boat Festival. In order to cope with the closure of some downstream companies in Shandong Shanghe Summit and other places, both affected the recovery of demand.

In short, the above three bad bears make the market difficult to have better expectations. Considering that domestic full-density devices strictly control the output of various products, flexible conversion to meet the needs of the market, the linear prices are expected to fall substantially, and there is little room for exploration. It is possible to test the 9000-9200. The yuan/ton support level is unlikely to fall below 9,000 yuan/ton. Due to the low price of high-pressure products, downstream companies increase their high-pressure usage, which will also play a role in supporting high pressure.

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