How Did LLDPE Feedstock & Downstream Market Develop?

SCI99

2019-08-13

How Did LLDPE Feedstock & Downstream Market Develop?

Preface

In this week, the LLDPE market prices were in the downtrend. At present, the mainstream LLDPE price in China was RMB 7,360-7,650/mt. Units under maintenance at China’s refineries decreased, and the loss due to maintenance was 35.6kt, down 4.2kt W-O-W.

This week, the LLDPE market prices were in the downtrend. At present, the mainstream LLDPE price in China was RMB 7,360-7,650/mt. Earlier this week, the LLDPE futures price fluctuated downwards, which suppressed the market trading activities. Besides, some Petrochemical companies reduced their ex-works prices, and players lacked confidence in the market, reducing prices to sell. In the middle of this week, although the futures price increased, some Petrochemical companies kept reducing their prices. With sluggish downstream demand, the orders were sparse, and some players kept reducing prices to sell.

Units under maintenance at China’s refineries decreased. According to the statistics, about 2,180kt/a capacity was involved in the maintenance, and the loss due to maintenance was 35.6kt, down 4.2kt W-O-W. Hereinto, 60kt/a FDPE unit at PetroChina Lanzhou Petrochemical was under long-term maintenance. 1,10kt/a old FDPE unit at PetroChina Dushanzi Petrochemical was under maintenance for 2 months. 300kt/a LDPE unit at China Shenhua Coal Oil Chemical Yulin Chemical Branch was under maintenance on July 22 for 20 days. 110kt/a old LDPE unit at Sinopec Maoming Company was under maintenance from July 25 to late August. 60kt/a old LDPE line 1 unit at Sinopec Beijing Yanshan Company was under maintenance from August 4 to August 10. 300kt/a HDPE unit at Sinopec-SK (Wuhan) Petrochemical Company was under maintenance from August 7 to August 13. 250kt/a tubular LDPE unit at Zhongtian Hechuang Energy was under maintenance on August 7, and the restart time was undetermined.

Demand: The overall operating rate of agricultural film industry kept increasing. At present, the operating rate is around 32%. The demand from agricultural film industry kept increasing slowly, and most producers maintained basic purchases. The overall operating rate of the wrapping film industry barely changed, maintaining 57%. Influenced by the environmental inspections, some units at producers in Linyi City were shut down. The overall orders were sparse, and players maintained basic feedstock purchases.