LLDPE Fundamentals and Market Outlook: 1. Spot Market and Sentiment: Petrochemical LLDPE prices remain relatively stable, but the spot trading atmosphere is stagnant, with a growing bearish sentiment. At current high price levels, performance in the East China region has been underwhelming. Some traders believe that a potential price drop could stimulate downstream demand and ease product circulation pressure, while others expect supply tightness at month-end to support both shipments and pricing. The market remains resilient. In the East China market, linear film material 7042 is reported at 11,900–12,050 yuan/ton, while South China stock is around 11,600 yuan/ton. 2. Demand Trends: Agricultural film demand is entering its off-season, and this year’s prices are over 1,000 yuan higher than last year. End-users show limited enthusiasm for purchasing high-priced raw materials, and market sentiment among traders remains cautious and uncertain. 3. Inventory Levels: As of May 13, petrochemical inventories in the three major regions dropped by more than 8,000 tons compared to May 6, representing a 9.2% decrease. Linear inventory fell sharply during the week, down nearly 8,000 tons from the previous report. East China saw the most significant decline. Overall, petrochemical stocks across the three regions have fallen to varying degrees. According to Longzhong, the average operating rate in the three regions this week was around 80%. 4. Import Situation: The Far East import price stands at 1,540 (+5) USD, equivalent to approximately 12,121 RMB/ton. Import prices have risen significantly, yet import volumes have been on a downward trend. 5. Cost Side: Crude oil prices remain strong, supported by optimism about the peak season. Asian naphtha is at 953.25 (+5.25). The average production cost per ton of polyethylene is about 10,410 yuan, with petrochemical margins around 1,300 yuan/ton. Market View: Currently, both supply and demand in the market are weak, with prices fluctuating at a high level. Due to recent maintenance in LLDPE production, inventory pressure remains low, and the room for spot price correction is expected to be limited. On the futures side, L1409 has rebounded after a sharp rise, with a discount of about 700 yuan/ton relative to the spot. The discount rate poses some risk for short positions, so it's not advisable to go short. For now, if the price pulls back to the 10,900 yuan/ton level, it may be a good opportunity to buy. Additionally, with new capacity expected to come online in the fourth quarter, the impact will likely appear in the 1501 contract. Therefore, it might be wise to short a portion of the 1501 contract to hedge risks while holding the 1409 contract. Multi-card Shower Water Control Machine Multi-card Shower Water Control Machine,IC Card Smart Water Meter,Household Smart Water Meter,Household IC Card Water Meter Shandong xuheng instrument co., ltd , https://www.sdxuhengmeter.com