The downstream plants production in some North China regions have been restricted before the National Day holiday

Firstly, on demand side, the downstream plants production in some North China regions have been restricted before the National Day holiday, thus LLDPE demand have been bearish. And the operating rate of agriculture film plants have remained a relatively low level, only accounted to around 30%. Then since the production restrictions in North China regions have cancelled after the National Day holiday, the operating rate of agriculture film plants have ramped up quickly and now reached to around 60%. Rigid demand of LLDPE have released quickly. Also, as the LLDPE price drops, the profit margin of agriculture film plants is good and buying interest to low-rate LLDPE have improved gradually, which supports the LLDPE and restrict its down space.