In March of Yangchun, domestic agricultural film enterprises gradually started production, and the overall demand for polyethylene is expected to improve. However, as of now, the pace of market demand follow-up is still average, and the purchasing enthusiasm of factories is not high. Most of the operations are based on demand replenishment, and the inventory of two oils is slowly being depleted. The market trend of narrow range consolidation is obvious. So, when can we break through the current pattern in the future?
Since the Spring Festival, the inventory of two types of oil has remained high and difficult to maintain, and the consumption pace has been slow, which to some extent restricts the market's positive progress. As of March 14th, the inventory of two oils was 880000 tons, an increase of 95000 tons compared to the same period last year. Currently, petrochemical companies are still facing pressure to reduce inventory, which is why there is some pressure on price increases.
After the Yuanxiao (Filled round balls made of glutinous rice-flour for Lantern Festival), downstream product enterprises have improved their work, especially in the agricultural film industry and the pipe industry. However, the accumulation of new orders by enterprises is limited, and the continuous range of plastic futures is weak. The factory's purchase enthusiasm is not high, and the operations taken are obvious. With the continuous warming of temperature and the expected increase in downstream demand, the market is expected to operate well.
Recently, oil prices have remained at high and fluctuating levels. Although the Federal Reserve and the European Central Bank continue to maintain high interest rate policies, investors' concerns about the economic prospects and energy demand prospects are difficult to ease the pressure on oil prices, but the geopolitical situation in the Middle East and the Russia-Ukraine conflict still have huge uncertainties, so we cannot rule out the possibility of boosting the oil market in stages. Overall, short-term international oil prices may still be dominated by high volatility.
Overall, if future demand follows in an orderly manner and petrochemical inventory is smoothly destocked, the market price center will fluctuate upwards. However, in the short term, strong expectations are weak, and the market still maintains a narrow consolidation trend, with insufficient driving force.
Post time: Mar-18-2024