In terms of domestic plastic futures, polyvinyl chloride (PVC) futures fluctuated and fell, which led to a continuous shift in the focus of spot quotations; Polypropylene (PP) and linear low-density polyethylene (LLDPE) futures fluctuated narrowly, while spot prices were slightly adjusted. During the off-season, the purchasing enthusiasm of terminal enterprises is poor, and overall they mainly maintain low prices for on-demand purchases. The trading performance of Guangdong Plastic Exchange in this period was insufficient, and the market continued to be stable. The enthusiasm of merchants to enter the market was not high, and the trend of the plastic index remained flat. As of the close, the China Plastics Price Index of the Plastics Exchange was reported at 1761.22 points.

On a macro level, the central bank's downgrade will inject liquidity into the subsequent economic development, to some extent offsetting the downward pressure on the year-end economy. In terms of industry, there are not many upstream enterprises undergoing maintenance, and the operating rate is steadily increasing. However, due to various factors such as air pollution prevention and control, the Winter Olympics, and early holidays before the Spring Festival, the operating rate of downstream product enterprises has shown a slow downward trend, making it difficult to increase demand. It is expected that the weak plastic market situation will be difficult to reverse in the short term, and prices will maintain a narrow downward trend.

PVC prices have slightly fallen, futures have been weakly consolidated, industry confidence is insufficient, downstream receiving intentions are not high, spot transactions are flat, and merchants mainly offer discounts for shipments. The PVC market has fallen by about 400 yuan (ton price, the same below) in this period. As of the end of the period, the mainstream self pickup price for type 5 ordinary electrical aggregate materials in the South and East China markets was 8900-9100 yuan. The problem of insufficient supply of raw material calcium carbide has been basically solved, and there are few maintenance enterprises. The operating rate of the PVC industry remains at around 80%. Due to the weak performance of the PVC market and poor profits, it is expected that the production enthusiasm of enterprises will be affected, and it is difficult to increase the operating rate of the PVC industry in the short term. In terms of demand, downstream enterprises in East and South China have generally stable production, but there is a shortage of orders, making it difficult to improve production rates; The operating rate of downstream enterprises in North China has decreased, and the off-season effect is gradually emerging. Downstream enterprises have little intention of hoarding goods, and most insist on purchasing for essential needs. Under the situation of increasing and decreasing supply and demand, social inventory has accumulated for four consecutive weeks and increased significantly year-on-year. It is expected that the PVC market will experience weak fluctuations in the next period.

PP is weak and the narrow adjustment futures are fluctuating at a low level, while the ex factory prices of petrochemicals are mostly stable. Some merchants' offers have slightly declined, and downstream factories are cautious in purchasing according to demand. As of the end of the period, the mainstream quotation for PP drawing materials in China was 8070~8370 yuan, a decrease of 45 yuan from the previous period. In terms of supply, some petrochemical production units have entered shutdown maintenance in this period, while others have been restarted and operated one after another. The estimated losses from maintenance of petrochemical enterprise units have slightly increased. In terms of petrochemical production proportion, the discharge rate of wire drawing materials has recently declined to a moderate level, and the supply of wire drawing materials has slightly tightened. At present, the inventory level of petrochemicals is neutral, and inventory pressure is not high at the moment. Some traders are offering discounts for shipments, and the overall pace of destocking is average. In terms of demand, the overall operating rate of downstream industries has slightly increased. Among them, due to the increased risk of the recent epidemic, the demand for protective equipment such as masks has improved, and the enthusiasm of non-woven fabric enterprises for operating has improved. It is expected that the PP market will slightly consolidate in the next period.

LLDPE is stabilizing, futures are fluctuating, and petrochemical ex factory prices are mostly stable, with some fluctuations. The adjustment of merchant offers is not significant, and downstream inquiries are generally positive. As of the end of the period, the mainstream quotation for LLDPE in China was between 8650 and 9200 yuan, unchanged from the previous period. In terms of supply, the current production equipment of petrochemical enterprises continues to operate at a high level, and the maintenance losses of petrochemical equipment are not significant. In terms of new facilities, the production progress of some new facilities at Zhejiang Petrochemical Phase II and Luqing Petrochemical has been delayed, and there have been shutdowns of previously put into operation new facilities. The impact of new facilities on supply is currently limited. In terms of imports, there has been little change in the quantity of goods arriving at the port recently, and the overall import supply is still tight. Some factories are purchasing at low prices, and port inventory continues to be depleted. In terms of demand, the new orders for downstream agricultural film have weakened recently, and the willingness of factories to replenish inventory is not strong. The demand for pipe orders has been mediocre, and it is expected that the LLDPE market will fluctuate in the next period.