The third quarter was a concentrated period for the maintenance and demand rebound of polyethylene enterprises in China. In the past two years, domestic petrochemical enterprises gradually increased their overhaul plans in July. Although the operating pressure in the petrochemical industry was relatively high in the first half of the year, petrochemical inventories remained high for a long time, but with the implementation of the three-quarter device maintenance plan, petrochemical inventories are expected to fall back. The pressure will be eased.
This year, Fushun Petrochemical's annual output of 750,000 tons and Daqing Petrochemical's annual production capacity of 600,000 tons of new polyethylene have been completed and will be officially put into production in September; Qilu Petrochemical's annual output of 250,000 tons of equipment is currently in full swing. It is expected that Put into operation in November. A total of 1.6 million tons of domestic production capacity will be released at the end of the third quarter and the beginning of the fourth quarter, which will have a certain impact on the domestic market supply in the fourth quarter.
After the import of polyethylene, the risk factors remained high after June, and it is difficult to obtain stable support for market confidence. Abroad, cheap sources of goods continue to emerge, and still pose pressure on the domestic market. In the third quarter, the total amount of imported polyethylene will generally show an upward trend. In the fourth quarter, with the steady and normal production of domestic equipment and weak downstream demand, the overall import volume will gradually decrease.
The third quarter is usually the peak period for China's plastic products industry to focus on stockpile stock preparation. With the increase in domestic demand and the increase in foreign export orders, downstream plastic product manufacturers will intentionally look for low procurement raw materials in advance. In the first half of the year, major domestic large-scale dealers evaded market risks and maintained low inventory operations. The sales strategy was mainly fast-forward and fast-out. However, in late June, some distributors’ inventory began to increase, and the market was optimistic about the third quarter market. Make demand already have signs of start.
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