LLDPE Fundamentals and Market Outlook: 1. Spot Market and Sentiment: Petrochemical LLDPE prices remain stable, but the spot trading atmosphere is stagnant, with a growing bearish sentiment. At higher price levels, the performance in the East China region has been less than satisfactory. Some traders believe that a price drop could stimulate downstream demand, potentially easing product circulation pressure. Others, however, expect that supply tightness at the end of the month might affect both shipments and pricing, keeping the market relatively strong. In the East China market, linear film material 7042 is reported at 11,900–12,050 yuan/ton, while South China stocks are around 11,600 yuan/ton. 2. Demand Trends: The demand for agricultural films has entered the off-season, and this year’s prices are more than 1,000 yuan higher compared to last year. End-users have shown limited enthusiasm for purchasing high-priced raw materials, and market sentiment remains cautious among traders. 3. Inventory Levels: As of May 13, petrochemical inventories in the three major regions dropped by over 8,000 tons compared to May 6, marking a 9.2% decrease. Linear inventory fell sharply during the week, down nearly 8,000 tons from the previous reporting date. The East China region saw the most significant reduction. From a regional perspective, total petrochemical stocks declined across all three areas. According to Longzhong, the average operating rate in the three major regions this week was approximately 80%. 4. Import Situation: The import price in the Far East stood at 1,540 (+5) USD, equivalent to about 12,121 yuan/ton. Despite a sharp increase in import prices, the volume of imports has been on a downward trend. 5. Cost Factors: Crude oil has shown strong performance, supported by optimism around the peak season. Asian naphtha reached 953.25 (+5.25). The average production cost per ton of polyethylene is approximately 10,410 yuan, with petrochemical margins standing at around 1,300 yuan/ton. Market View: Currently, both supply and demand in the LLDPE market are weak, with prices remaining elevated and volatile. Due to recent maintenance activities in LLDPE, inventory pressure is not significant, suggesting limited room for spot price corrections. On the futures side, L1409 has rebounded after a sharp rise, with a discount of about 700 yuan/ton versus the spot. This discount poses a risk for short positions, so it's not advisable to take short contracts at this time. If the price drops back to the 10,900 level, it may be a good opportunity to consider long positions. Additionally, new capacity pressures in the fourth quarter will likely impact the 1501 contract, so it's recommended to hedge some risk by shorting a portion of the 1501 contract while maintaining a long position on 1409. IOT Remote Water Meter IP68 Valveless IOT Remote Water Meter IP68 Valveless,Horizontal Water Meter,Dry Dial Woltmann Water Meter,Horizontal Woltmann Water Meter Shandong xuheng instrument co., ltd , https://www.sdxuhengmeter.com