In December 2023, there were differences in the trend of PE market products, with linear and low-pressure injection molding oscillating upwards, while high-pressure and other low-pressure products were relatively weak. At the beginning of December, the market trend was weak, downstream operating rates declined, overall demand was weak, and prices slightly declined. With major domestic institutions gradually issuing positive macroeconomic expectations for 2024, linear futures have strengthened, boosting the spot market. Some merchants have entered the market to replenish their positions, and linear and low-pressure injection molding spot prices have slightly increased. However, downstream demand continues to decline, and the market transaction situation remains flat. On December 23rd, the PE plant of Qilu Petrochemical was unexpectedly shut down due to an explosion. Due to the high usage of Qilu Petrochemical's PE products in the specialized field and its limited production capacity, the impact on other general material markets was limited, resulting in a strong rise in Qilu Petrochemical's products.
As of December 27th, the domestic linear mainstream in North China is priced at 8180-8300 yuan/ton, and the high-pressure ordinary membrane material is priced at 8900-9050 yuan/ton. The industry is not optimistic about the market in the first quarter of 2014, with a bearish outlook on the demand side, and the global economic situation is not optimistic. However, expectations of interest rate cuts from the United States may rise, and China's macroeconomic policies are improving, which to some extent alleviates the market's bearish mentality.
Post time: Jan-02-2024