In May, PE trend was weak, and the three varieties in spot dropped to different extent. The high pressure drop is the most obvious, with a continuous decline in the month, and the price falls below RMB 10000; Linear and low-pressure months are both rising first and then falling. The market trading and investment atmosphere is light, and businesses follow the market, and prices follow the decline. The following is a detailed view:

According to the data of business agency, the average factory price of LLDPE (7042) in East China was 8400.00 yuan / ton on May 1, 8100.00 yuan / ton on May 31, and 3.57% in the month, and the overall price rose 21.80% compared with the same period last year.

According to the data of business society, the average factory price of LDPE (2426h) in East China was 11075.00 yuan / ton on May 1, 9825.00 yuan / ton on May 31, and 11.29% in the month, and the overall price rose 30.13% compared with the same period last year.

According to the data of business agency, the average factory price of HDPE (5000S) in East China was 9016.67 yuan / ton on May 1, the average price on May 31 was 9000.00 yuan / ton, and the average price fell by 0.18% in the month, and the overall price rose 25.58% compared with the same period last year.

In the first ten days of May, PE three spot markets rose and fell, of which only the high-pressure market had a short decline at the beginning of the month, followed by stability, and the low-pressure and linear markets increased to varying degrees. In the first ten days, the international crude oil was the main actor, the bulk goods rose intensively, the linear futures market was open and high-level operation, which raised the confidence of the industry to some extent, and the market investment atmosphere improved. Petrochemical enterprises raised the factory price slightly, and the merchants followed the increase in the offer. Under the guidance of favorable factors, the high pressure falling space is limited, and the linear and low-pressure trend is good.

But in the late May, the market is no longer favorable, the trend of PE spot market is weak, the overall decline is mainly, and the ex factory price of petrochemical industry has also declined to some extent. LDPE was the most obvious down regulated range. As petrochemical enterprises cut down the factory price, the confidence in the market is weak, and the futures market of lianplastic has fallen, which has brought obvious pressure on the market and loose cost support. In terms of demand, due to the off-season of production of agricultural film, the linear demand is not followed up enough, and the market is in general trading atmosphere. In addition, some areas in South China have limited power, which affects the start of downstream enterprises, and there is a low expectation of raw material demand. In terms of supply, new production capacity resources have entered the market, and domestic supply has increased significantly, which also brings some profits to the market. The merchants actively ship, and make small profit to stimulate downstream market procurement, but the terminal still maintains the purchase just needed, and the market lacks good guidance.

In May, the futures of continuous plastic fell mainly, bringing some profit to the spot market. On May 31, the opening price of PE futures 2109 was 7665, the highest price was 7780, the lowest price was 7650, the closing price was 7755, the former settlement price was 7755 and the settlement price was 7720, which was the same as the previous trading day. The volume of trading was 471130, the position was 373709, and the daily position increased by-26525（ Quotation unit: yuan / ton)

At present, some areas in South China have limited electricity, which affects the start of downstream enterprises. There is a low expectation of raw material demand, and the agricultural film is in the traditional off-season production. The overall commencement rate of all industries downstream of polyethylene is lower than that of last month, and the market demand is limited. With the continuous start-up of Yanshan Petrochemical and Maoming Petrochemical Plants and the resumption of production, domestic PE supply has also brought about a lot of profits. But the positive factors are also: coal, methanol and other raw materials rose in May, which brought relative support to PE market. It is expected that the overall trend of PE spot market in June is weak, but there is limited falling space.