Since PP was listed on the market this year, the price difference between LLDPE and PP has been continuously expanding. From the beginning of listing, it has expanded from RMB 100/ton to a maximum of RMB 900/ton. However, in recent months, the spread between the two has rapidly narrowed, and the price of 1409 contract PP in recent months has been higher than LLDPE. LLDPE and PP both belong to the downstream products of crude oil or coal, and the direct raw materials are also naphtha and olefins. Therefore, the main reasons for the difference in the trend of the two are the different supply and demand patterns and changes in the two stocks. Damascus Knife is mainly made of damascus steel. And the steel was the forged steel comprising the blades of swords smithed in the Near East from ingots of wootz steel imported from India and Sri Lanka. These swords are characterized by distinctive patterns of banding and mottling reminiscent of flowing water. Such blades were reputed to be tough, resistant to shattering, and capable of being honed to a sharp, resilient edge. Damascus Knife Damascus Pocket Knife,Damascus Knife,Damascus Steel Pocket Knife,Damascus Kitchen Knives YANGJIANG TRI-WIN INDUSTRY & TRADE CO.,LTD , https://www.triwintableware.com
LLDPE and PP supply pressure vary
National Bureau of Statistics data show that domestic production of PE in July 2014 was 1.361 million tons, an increase of 59% from the previous month; an increase of 55% compared to the same period in 2013, and the import volume was 7.636 million tons, an increase of 2.2% from the previous month. During the same period, domestic PP production was 1.23 million tons, an increase of 23% over the same period of last year. In July, the import volume was 305,900 tons, a decrease of 17% compared with the same period of last year.
Therefore, judging from the July output, due to the high price of the previous PE, the production enterprises increased the operating rate, so the output of the PE increased substantially. The output of the PP maintained the growth rate before the increase, so the supply of the PE was relatively The pressure is greater than the supply pressure of PP.
Inventory changes PP and LLDPE differentiation
In terms of inventory, statistics for the middle of August 2014 show that PE's inventory increased by 4.75% year-on-year and by 4.12% compared with the previous period. Looking at the inventory trend this year, the level of PE stocks has been rising since the end of March and has seen a year-on-year growth. There is still no upward trend in the growth rate of the PE, and there are signs of a turnaround year-on-year. PP inventory, data statistics in mid-August, PP inventory decreased by 10.2% year-on-year, a slight decrease of 0.81% qoq. From the perspective of inventory trends this year, PP began to decline from mid-May inventory, so inventory is affecting the differentiation of LLDPE and PP trends Important factors.
In summary, the increase in PE production is greater than that of PP, and the supply pressure is prominent. At the same time, the inventory of PE has increased in both the chain and the same period of the previous year, while the inventory of PP has been reduced. So at present, the supply pressure of PE is greater than PP, and the price difference will still have room to shrink. The position of PE multi-PP can be properly set up, but due to the fact that the spread has been reduced more, pay attention to risk control.