Historically low LLDPE still at risks

With the continuous spread of the coronavirus pandemic, the whole world has entered a major economic crisis. As an old saying goes like this, misfortunes never come singly, the OPEC+ countries have started a crude oil price war in March. For the LLDPE market, the coronavirus pandemic encounters a fierce crude oil price war, which results in a sharply lower LLDPE upstream cost and an unprecedented contraction in downstream demand. Under the attack, LLDPE futures falls below 5300yuan/mt and spot have dropped to around 5500yuan/mt---an absolute low level that no one in the market has ever seen before.

Unfortunately, however, such low-price also occur in other chemical markets, such as ethylene, PTA, MEG, etc., and these products all struggling in their own historical lows. Under the influence of crude oil, the market of downstream products is difficult to hit bottom, and there is still a driving force and space for further decline.