According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LLDPE (7042) was 8,921 RMB/ton on January 1, and the average price was 8,441 RMB/ton on January 22, during which the quotation fell by 5.38%.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LDPE (2426H) was 1,0550 RMB/ton on January 1, and the average price was 10,000 RMB/ton on January 22, during which the quotation fell by 5.21%.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of HDPE (2426H) was 8,587 RMB/ton on January 1, and the average price was 8,400 RMB/ton on January 22, during which the quotation fell by 2.18%.

The PE market has been continuously declining since January. On the supply side, new production capacity units such as Yulong Petrochemical and Inner Mongolia Baofeng have continued to increase in volume in the early stage, while Wanhua Chemical's Phase II PE unit has been put into operation. In addition, with the resumption of production by the maintenance unit in the early stage, the pressure on the supply side continues to increase. On the demand side, as the Spring Festival holiday approaches, downstream demand weakens and factory operating rates decrease, with a significant decline in agricultural film operating rates. At the end of the year, merchants actively lowered their quotations to reduce inventory, mainly by offering discounts for shipments. As of Wednesday's close, international oil prices have fallen for five consecutive trading days, with a range decline of nearly 5%, and cost support has weakened.

Since January, the trend of plastic futures has been mainly volatile and weak, which is bearish for the spot market. Among them, on January 22, the Dalian Commodity Exchange PE l2505 contract opened at 7,800 RMB and closed at 7,777 RMB, down 56 RMB, with a high of 7,813 RMB and a low of 7,763 RMB, down 0.71%.

The newly added production capacity continues to increase, with the Spring Festival holiday approaching and downstream shutdowns and holidays. Market supply pressure still exists, and the fundamentals are weak. It is expected that PE will continue to show a weak trend.

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