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Effect of Zhongan Unit on Domestic Polyethylene Market

2019年08月19日08:49 来源:无

The first phase of China-Anshan Coal-Chemical Integration Project consists of 1.7 million tons of coal to methanol and conversion of olefins and derivatives, 4 million tons per year of coal mines, 350,000 tons of linear low density polyethylene and 350,000 tons of polypropylene. The second phase of the project is to produce ethylene glycol from 600,000 tons of coal per year and 4 million tons per year of coal mines.

After the completion and commissioning of the Zhongan Coal Chemicals Integration Project, it filled the blank of the self-supply of polyolefins in Anhui Province.

Progress of the project: MTO grade qualified methanol was produced on 20 July, MTO (methanol to olefin) plant was successfully commissioned on 27 July, and qualified ethylene and propylene products were produced. On 2 August, qualified particles were produced in polypropylene and polyethylene plants. So far, the whole process of Zhongan Coal Chemical Plant was successfully opened.

The first batch of polyolefin materials has been sent out from the plant this morning.

The supply side of polyethylene was observed. According to statistics, the ratio of circumference to circumference of linear film production decreased slightly to 34.58%. In the early stage, there was more supply. Some devices were successively converted to low-pressure pipes, injection moulding and hollow materials. As a kind of futures trading, the linear resources are abundant in circulation at the beginning of the month. With the installation and commissioning of the intermediate equipment, the linear resources continue to increase sharply. Inventories of Pucheng, China Coal and other production enterprises are on the high side, and the supply pressure of the market is increasing.

On the demand side, packaging film enterprises have good orders, and demand has rebounded slightly. Factories will choose low-cost resources for appropriate purchasing. However, the peak season start-up of agricultural film enterprises has been delayed compared with previous years. The order quantity maintenance period of Enterprises above the scale is generally 2-5 days. The order accumulation of individual enterprises of scale is slightly more, and the start-up is still acceptable, while the order of small enterprises is small, and the start-up or shutdown of stages shows that the peak season is not busy for the current market. Some purchasers said that they would choose the relatively low-priced sources of similar products in the cycle, and the number of products was smaller than three.

Mentality, due to the continued decline in futures, inadequate demand follow-up, factory prices are also continuously lowered, a strong pessimistic mentality on the market.

In terms of market prices, suppliers and intermediaries actively reduce their warehouses. In the absence of transaction support, spot prices appear inverted phenomenon, ranging from about 50 yuan per ton. Taking East China as an example, the price of coal 7042 is 7500-7550 yuan/ton, the resources are mainly concentrated in Changzhou, Hangzhou and other places, while the price of oil 7042 is 7550-7600 yuan/ton. Some businessmen say that the weekly planning volume has been reduced, while the normal planned businessmen keep low inventory and have higher storage costs (Shanghai Petroleum Warehouse). After three days, the warehousing fee is 1 yuan/ton, with high sales motivation and low-cost delivery.

Simply put, more supply and less demand, continued decline in futures and pessimistic attitude are the main factors that make it difficult for prices to rise at present. At the beginning of this month, the merchants mostly actively shipped goods and lowered their warehouses. In the short run, they will still keep their quotations at a lower level, and the price will still drop by about 100 yuan/ton. In the long run, the linear monthly ring-to-ring decline is 600 yuan/ton. Some operators believe that it is close to the bottom of the stage and do not rule out the rebound expectation. This situation may occur short run.

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