Although the 2015 PE increment in the supply, but demand is on the decline, so the overall price decline. In 2016, the domestic economy has improved, PE downstream demand overall improvement, so although the 2016 new capacity put more, but because of demand to support prices. From the increase in the downstream of PE terminal products production, the main products are rising trend, 2016 1, November increase plastic film production increased by 3.4% to 6%, daily plastic products increased from 0.67% to 6.9%.

The current macroeconomic indicators better overall economic situation, little change. From the plastic downstream consumption seasonal, November to the Spring Festival is the film demand reserve period, after the Spring Festival to March is the peak season demand. Therefore, the late season demand there is some support for the price of plastic.

PE new material to substitute renewable materials will increase

10 months of 2016, domestic PE renewable materials production fell by nearly 500 thousand tons, reducing the rate of close to 12%. PE renewable materials bigger decline in imports, the first 10 months of this year, imports of renewable materials PE cumulative reduction of 926 thousand and 300 tons, a decline of about 45%. PE renewable materials supply significantly reduced, the main reason is that the government environmental protection material market on regeneration of unprecedented efforts to rectify, North China, East China major waste plastics market hit large, a large number of renewable materials processing workshop shut down for several months or even shut down. In 2017, the state environmental protection efforts will not relax, renewable materials will gradually withdraw from the market, the new material to substitute renewable materials will increase, PE new material demand will be enlarged.

From the plastic market, although there is a new capacity intensive delivery caused by unfavorable factors supply increases, but the actual effect on the capacity may be less than expected. In the overall macroeconomic steadily under the background of PE, the downstream demand improved, while the demand is determined the price trend of the most critical variables of plastics.