Report Industry Investment Rating - Not provided Core Viewpoints - On January 15th, the plastic's maintenance devices changed little, with an operating rate of around 86%, at a neutral level. The overall downstream operating rate of PE remained at a relatively low level in the same period in recent years. Although the macro - atmosphere was warm, the improvement of the plastic supply - demand pattern was limited, and the recent upward space of plastic was expected to be limited. Due to new capacity coming into operation recently, the operating rate was higher than that of PP, and the peak season of agricultural film was gradually ending, so the L - PP spread was expected to decline [1]. Summary by Related Catalogs Market Analysis - As of the week of January 9th, after the New Year's Day holiday, the downstream operating rate of PE increased by 0.06 percentage points to 41.21% month - on - month. The orders of agricultural film continued to decline, and the raw material inventory also decreased, while the orders of packaging film increased slightly. The inventory accumulation amplitude during the New Year's Day this year was not large, and the petrochemical inventory was at a neutral level in the same period in recent years. New capacity was put into operation recently, and the plastic operating rate decreased slightly. With the temperature dropping, the northern demand decreased, and it was expected that the downstream operating rate would decline later [1]. Futures and Spot Market Quotes - Futures: The plastic 2605 contract opened higher, then increased positions and oscillated downward, with a minimum price of 6746 yuan/ton, a maximum price of 6888 yuan/ton, and finally closed at 6785 yuan/ton, above the 60 - day moving average, with a decline of 0.54%. The open interest increased by 980 lots to 467,506 lots [2]. - Spot: The PE spot market mostly rose, with the price change ranging from - 0 to + 150 yuan/ton. LLDPE was reported at 6720 - 6920 yuan/ton, LDPE at 9100 - 9360 yuan/ton, and HDPE at 6870 - 8440 yuan/ton [3]. Fundamental Tracking - Supply: On January 15th, the plastic operating rate remained at around 86%, at a neutral level [1][4]. - Demand: As of the week of January 9th, the downstream operating rate of PE increased by 0.06 percentage points to 41.21% month - on - month. The orders of agricultural film continued to decline, and the raw material inventory decreased, while the orders of packaging film increased slightly. The overall downstream operating rate of PE remained at a relatively low level in the same period in recent years [1][4]. - Inventory: On Thursday, the petrochemical early - morning inventory decreased by 30,000 tons to 530,000 tons week - on - week, 5,000 tons higher than the same period last year. The inventory accumulation amplitude during the New Year's Day this year was not large, and the petrochemical inventory was at a neutral level in the same period in recent years [1][4]. - Raw Materials: The Brent crude oil 03 contract fell below $65/barrel. The price of Northeast Asian ethylene remained flat at $725/ton month - on - month, and the price of Southeast Asian ethylene also remained flat at $745/ton month - on - month [4].

1. Report Industry Investment Rating - No information provided 2. Core View of the Report - On January 9th, the change in maintenance devices was small. The plastic operating rate remained at around 87%, at a neutral level. The PE downstream operating rate rose 0.06 percentage - points to 41.21% after the New Year's Day. The agricultural film was gradually out of the peak season, and the overall PE downstream operating rate was still at a low level in the same period in recent years. The New Year's Day inventory accumulation was not large, and the petrochemical inventory was at a neutral level in the same period in recent years. Although the macro - atmosphere was warm, the improvement of the plastic supply - demand pattern was limited. It was expected that the upward space of plastic in the near future was limited, and the L - PP spread was expected to decline [1]. 3. Summary According to Relevant Catalogs 3.1 Market Analysis - On January 9th, the plastic operating rate was around 87%. After the New Year's Day, the PE downstream operating rate rose 0.06 percentage - points to 41.21%. The agricultural film was out of the peak season, and its orders continued to decline, while packaging film orders increased slightly. The overall PE downstream operating rate was at a low level in the same period in recent years. New production capacities of 500,000 tons/year of ExxonMobil (Huizhou) LDPE, 700,000 tons/year of PetroChina Guangxi Petrochemical, and 500,000 tons/year of BASF (Guangdong) were put into production. It was expected that the downstream operating rate would decline. Although the macro - atmosphere was warm, the improvement of the plastic supply - demand pattern was limited, and the upward space was limited. The L - PP spread was expected to decline [1]. 3.2 Futures and Spot Market Conditions 3.2.1 Futures - The plastic 2605 contract increased positions and fluctuated upward, with a minimum price of 6,602 yuan/ton, a maximum price of 6,685 yuan/ton, and closed at 6,674 yuan/ton, below the 60 - day moving average, up 0.17%. The position decreased by 14,010 lots to 491,289 lots [2]. 3.2.2 Spot - The PE spot market showed mixed trends, with a price range of - 100 to + 100 yuan/ton. LLDPE was reported at 6,500 - 6,770 yuan/ton, LDPE at 8,650 - 9,110 yuan/ton, and HDPE at 6,750 - 8,340 yuan/ton [3]. 3.3 Fundamental Tracking - Supply: On January 9th, the change in maintenance devices was small. The plastic operating rate was around 87%, at a neutral level [4]. - Demand: As of the week of January 9th, after the New Year's Day, the PE downstream operating rate rose 0.06 percentage - points to 41.21%. The agricultural film was gradually out of the peak season, with orders and raw material inventory decreasing. Packaging film orders increased slightly, and the overall PE downstream operating rate was at a low level in the same period in recent years [4]. - Inventory: On Friday, the petrochemical early inventory decreased by 0.5 million tons to 5.7 million tons, 100,000 tons higher than the same period last year. The New Year's Day inventory accumulation was not large, and the petrochemical inventory was at a neutral level in the same period in recent years [4]. - Raw materials: The Brent crude oil 03 contract rose to $62/barrel. The Northeast Asian ethylene price remained flat at $725/ton, and the Southeast Asian ethylene price remained flat at $745/ton [4].