1. Report Industry Investment Rating - No information provided 2. Core Viewpoint - The PP price is expected to fluctuate strongly. The supply reduction expectation of PP remains due to the un - restored navigation of the Strait of Hormuz. Although the domestic supply - demand pattern of PP has improved, the market is affected by the Middle - East situation, and the market fluctuates greatly. Attention should be paid to the resumption progress of downstream production after the festival and the development of the Middle - East situation [1] 3. Summary by Relevant Catalogs 3.1 Market Analysis - As of the week of March 27, the downstream start - up rate of PP increased by 1.15 percentage points to 47.51% week - on - week. After the Spring Festival, the downstream demand is slowly recovering, and the start - up rate has not reached the pre - holiday normal level. The start - up rate of plastic weaving, the main downstream of drawing, increased by 0.86 percentage points to 41.14%. On March 31, the parking devices changed little, and the start - up rate of PP enterprises remained at about 73%, at a low level, and the production ratio of standard drawing decreased to about 27.5%. After the Spring Festival, the petrochemical inventory has been reduced, and it is currently at a neutral level in the same period in recent years. The Middle - East conflict still exists, the risk of crude oil supply interruption has not been eliminated, and the crude oil price remains high. The start - up rate of devices has decreased again. After the Lantern Festival, the downstream rigid demand was released intensively, and the price of downstream BOPP film increased. The domestic supply - demand pattern of PP has improved, and there are still expectations for the chemical industry to counter - involute. The Middle - East situation boosts the energy and chemical industry. Although PP does not rely on imports from the Middle - East, its upstream depends on liquefied petroleum gas and crude oil from the Middle - East. The PP production capacity in the Middle - East accounts for 9% of the world and about 25% of the world's polyolefin exports, affecting international prices and supply. The shortage of raw materials has led to an increase in the load reduction of olefin devices at home and abroad, and the downstream has a resistance to high prices, with light spot transactions [1] 3.2 Futures and Spot Market Conditions 3.2.1 Futures - The PP2605 contract decreased in positions and fluctuated downward, with a minimum price of 9019 yuan/ton, a maximum price of 9393 yuan/ton, and finally closed at 9103 yuan/ton, above the 20 - day moving average, with a decline of 4.12%. The position decreased by 18026 lots to 319551 lots [2] 3.2.2 Spot - The spot prices of PP in most regions declined. The drawing was reported at 8480 - 9180 yuan/ton [3] 3.3 Fundamental Tracking - Supply: On March 31, the parking devices changed little, and the start - up rate of PP enterprises remained at about 73%, at a low level, and the production ratio of standard drawing decreased to about 27.5% [4] - Demand: As of the week of March 27, the downstream start - up rate of PP increased by 1.15 percentage points to 47.51% week - on - week. After the Spring Festival, the downstream has a low acceptance of high - priced raw materials, the demand is slowly recovering, and the start - up rate has not reached the pre - holiday normal level. The start - up rate of plastic weaving, the main downstream of drawing, increased by 0.86 percentage points to 41.14% [4] - Petrochemical inventory: On Tuesday, the early petrochemical inventory decreased by 10000 tons to 850000 tons week - on - week, 30000 tons higher than the same period in the lunar calendar last year. Currently, the petrochemical inventory is at a neutral level in the same period in recent years [4] - Raw material: The Brent crude oil 05 contract fell to $107/barrel, and the CFR propylene price in China increased by $10/ton to $1290/ton week - on - week [4]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoint The report anticipates that polyolefin prices will fluctuate strongly due to the improved domestic supply - demand pattern, the expectation of anti - involution in the chemical industry, the support from the Middle East situation, and the reduced supply expectation. However, the market is volatile, and attention should be paid to the resumption progress of downstream production after the holiday and the development of the Middle East situation [3]. 3. Summary by Relevant Catalogs 3.1 Plastic and PP开工率 - Plastic开工率 decreased by 5 percentage points to around 80%, reaching a relatively low level, with new parking devices such as Qilu Petrochemical HDPE 1 line [13]. - PP开工率 dropped 3.5 percentage points to about 73%, also at a low level, with new parking devices including Ningxia Baofeng's third - line and Maoming Petrochemical's first - line [13]. 3.2 Plastic and PP下游开工率 - As of the week of March 27, PE下游开工率 increased by 2.16 percentage points to 39.75% week - on - week. After the Spring Festival, downstream production resumed gradually but had not returned to the pre - holiday normal level, showing seasonal changes [20]. - As of the week of March 27, PP下游开工率 rose 1.15 percentage points to 47.51% week - on - week. Downstream acceptance of high - priced raw materials was low, demand recovered slowly, and the downstream开工率 had not reached the pre - holiday normal level. The plastic weaving开工率 of the main downstream of drawn wire increased by 0.86 percentage points to 41.14% [20]. 3.3 Plastic基差 The spot price increase exceeded the futures price increase, and the 05 contract basis rose to - 268 yuan/ton but remained at a relatively low level [22]. 3.4 Plastic and PP库存 On Friday, the early petrochemical inventory decreased by 3.5 tons week - on - week to 77 tons, 2.5 tons lower than the same period last lunar year. Currently, the petrochemical inventory is at a neutral level compared to recent years [26]. 3.5 Market Analysis - The cost side: Although the US has sent negotiation signals, the Middle East conflict still exists, and the possibility of a cease - fire agreement between the US and Iran is low. The risk of crude oil supply interruption has not been eliminated, and crude oil prices have rebounded [3]. - Supply: New production capacities of 500,000 tons/year of BASF (Guangdong) FDPE and 300,000 tons/year of Yulong Petrochemical LDPE/EVA were put into operation in January 2026, and there are no new production capacity plans for the first quarter. The non - navigation of the Strait of Hormuz still leads to the expectation of reduced polyolefin supply [3]. - Demand: After the Lantern Festival, downstream rigid demand was released intensively. During the spring plowing season, the prices of downstream BOPP films and agricultural films continued to rise [3]. - International influence: Iran's PE imports account for about 8% of China's total imports and about 3% of domestic production, while the Middle East region's imports account for about 20% of domestic production. The Middle East's PE production capacity accounts for over 15% of the global total, and PP does not rely on Middle East imported goods, but its upstream depends on Middle East liquefied petroleum gas and crude oil. The Middle East's PP production capacity accounts for 9% of the global total, and the Middle East's polyolefin exports account for about 25% of global polyolefin exports, affecting international prices and supply [3].

1. Report Industry Investment Rating - Not provided 2. Core Viewpoints of the Report - The PP price is expected to fluctuate strongly. The domestic supply - demand pattern of PP has improved, the chemical anti - involution is still expected, the Middle East situation boosts the energy and chemical industry, and the PP supply reduction expectation still exists due to the un - restored navigation of the Strait of Hormuz. However, the market also faces factors such as the downstream's resistance to high prices and the slow recovery of demand [1] 3. Summary by Relevant Catalogs 3.1. Market Analysis - As of the week of March 27, the downstream PP operating rate rebounded 1.15 percentage points to 47.51% week - on - week. After the Spring Festival, demand is slowly recovering, and the downstream operating rate has not returned to the pre - holiday normal level. The operating rate of the main downstream plastic of drawstring increased 0.86 percentage points to 41.14%. On March 27, the parking devices changed little. The PP enterprise operating rate remained at around 73%, at a low level, and the production ratio of standard drawstring remained at around 29%. After the Spring Festival, the petrochemical inventory has decreased, and it is currently at a neutral level in the same period in recent years. The cost of crude oil has increased due to the Middle East conflict, and the risk of supply interruption has not been eliminated. The PP supply reduction expectation still exists due to the un - restored navigation of the Strait of Hormuz [1] 3.2. Futures and Spot Market Conditions - **Futures**: The PP2605 contract opened higher, increased positions, and fluctuated. The lowest price was 8888 yuan/ton, the highest price was 9246 yuan/ton, and it finally closed at 9120 yuan/ton, above the 20 - day moving average, with a gain of 2.39%. The open interest increased by 4112 lots to 343310 lots [2] - **Spot**: The spot prices of PP in different regions showed mixed trends. The drawstring was reported at 8580 - 9280 yuan/ton [3] 3.3. Fundamental Tracking - **Supply**: On March 27, the parking devices changed little. The PP enterprise operating rate remained at around 73%, at a low level, and the production ratio of standard drawstring remained at around 29% [4] - **Demand**: As of the week of March 27, the downstream PP operating rate rebounded 1.15 percentage points to 47.51% week - on - week. After the Spring Festival, the downstream's acceptance of high - price raw materials is not high, demand is slowly recovering, and the downstream operating rate has not returned to the pre - holiday normal level. The operating rate of the main downstream plastic of drawstring increased 0.86 percentage points to 41.14% [4] - **Inventory**: The petrochemical early inventory on Friday decreased by 3.5 tons week - on - week to 77 tons, 2.5 tons lower than the same period in the lunar calendar last year. Currently, the petrochemical inventory is at a neutral level in the same period in recent years [4] - **Raw Materials**: The Brent crude oil 05 contract rose to $108/barrel, and the CFR propylene price in China increased by $30/ton week - on - week to $1280/ton [4]

Report Industry Investment Rating - Not provided Core Viewpoints - The domestic supply - demand pattern of plastics has improved, and there are still expectations for the chemical industry to counter - involution. The Middle East situation boosts the energy - chemical industry. It is expected that plastic prices will fluctuate strongly. Attention should be paid to the resumption progress of downstream industries after the festival and the development of the Middle East situation [1] Summary by Relevant Catalogs Market Analysis - On March 27, new parking devices such as Qilu Petrochemical's HDPE Line 1 were added, and the plastic operating rate dropped to around 80%, which is at a relatively low level. The downstream operating rate of PE increased by 2.16 percentage points to 39.75% week - on - week. After the Spring Festival, the petrochemical inventory has been reduced and is currently at a neutral level in the same period in recent years. Although the US has sent negotiation signals, the Middle East conflict still exists, and the risk of crude oil supply interruption has not been lifted, leading to a rebound in crude oil prices. New production capacities of 500,000 tons/year of BASF (Guangdong) FDPE and 300,000 tons/year of Yulong Petrochemical LDPE/EVA were put into operation in January 2026, and there are no plans to put new production capacities into operation in the first quarter. The downstream factories have increased their resumption of work after the Lantern Festival, and the rigid demand has been released intensively, causing the prices of agricultural films in North, East, and South China to continue to rise. However, downstream users are resistant to high prices and their procurement is more cautious, with low enthusiasm for spot transactions. The expectation of reduced plastic supply still exists due to the non - resumption of navigation in the Strait of Hormuz [1] Futures and Spot Market Conditions - Futures: The plastic 2605 contract opened higher and then increased positions and fluctuated. The lowest price was 8,716 yuan/ton, the highest was 8,956 yuan/ton, and it finally closed at 8,868 yuan/ton, above the 60 - day moving average, with a gain of 1.71%. The position increased by 4,709 lots to 326,742 lots [2] - Spot: The PE spot market showed a mixed trend, with price changes ranging from - 200 to + 200 yuan/ton. LLDPE was reported at 8,580 - 9,470 yuan/ton, LDPE at 10,300 - 11,610 yuan/ton, and HDPE at 8,600 - 9,940 yuan/ton [3] Fundamental Tracking - Supply: On March 27, new parking devices such as Qilu Petrochemical's HDPE Line 1 were added, and the plastic operating rate dropped to around 80%, at a relatively low level [4] - Demand: As of the week of March 27, the downstream operating rate of PE increased by 2.16 percentage points to 39.75% week - on - week. After the fifth week of the Spring Festival, downstream industries resumed production one after another but have not returned to the normal level before the festival. The overall downstream operating rate of PE shows seasonal changes [4] - Inventory: The petrochemical early inventory on Friday decreased by 35,000 tons week - on - week to 770,000 tons, 25,000 tons lower than the same period in the lunar calendar last year. Currently, the petrochemical inventory is at a neutral level in the same period in recent years [4] - Raw materials: The Brent crude oil 05 contract rose to $108/barrel. The ethylene prices in Northeast Asia and Southeast Asia remained flat week - on - week at $1,400/ton [4]

Report Industry Investment Rating - Not provided Core Viewpoints - The domestic supply - demand pattern of plastics has improved, but the Middle East situation is changeable, the market fluctuates greatly, and it is recommended to temporarily exit the market and wait and see, while paying attention to the progress of downstream resumption of production after the festival and the development of the Middle East situation [1] Summary by Directory Market Analysis - On March 26, new shutdown devices such as Tarim Petrochemical's full - density were added, and the plastics operating rate dropped to about 81%, which is at a moderately low level [1][4] - As of the week of March 20, the downstream operating rate of PE increased by 3.76 percentage points to 37.59% month - on - month. After the Spring Festival, downstream factories gradually resumed production but have not returned to pre - holiday levels, showing seasonal changes [1][4] - After the Spring Festival, petrochemical inventories have been reduced, and currently petrochemical inventories are at a neutral level in recent years [1][4] - There are reports that the US may stop the fire for a month to discuss a 15 - point agreement with Iran. Crude oil prices fell from a high and then stabilized. The new production capacities of BASF (Guangdong) FDPE and Yulong Petrochemical LDPE/EVA were put into operation in January 2026, and there are no plans for new production capacity to be put into operation in the first quarter [1] - After the Lantern Festival, downstream factories resumed work, and the rigid demand was released intensively. The prices of agricultural films in North, East, and South China continued to rise. The domestic supply - demand pattern of plastics has improved, but there is resistance to high prices in the downstream, and spot transactions are weak. The supply reduction expectation of plastics still exists due to the non - navigability of the Strait of Hormuz [1] Futures and Spot Market Conditions - Futures: The plastics 2605 contract opened higher, increased positions, and fluctuated. The lowest price was 8620 yuan/ton, the highest was 8864 yuan/ton, and it closed at 8767 yuan/ton, up 1.01%. The position increased by 2213 lots to 322033 lots [2] - Spot: The PE spot market showed mixed price changes, with price changes ranging from - 200 to + 200 yuan/ton. LLDPE was reported at 8380 - 9570 yuan/ton, LDPE at 10430 - 11810 yuan/ton, and HDPE at 8600 - 9940 yuan/ton [3] Fundamental Tracking - Supply: On March 26, new shutdown devices such as Tarim Petrochemical's full - density were added, and the plastics operating rate dropped to about 81%, at a moderately low level [4] - Demand: As of the week of March 20, the downstream operating rate of PE increased by 3.76 percentage points to 37.59% month - on - month, showing seasonal changes [4] - Petrochemical inventory: On Thursday, the early petrochemical inventory decreased by 20,000 tons to 805,000 tons, 15,000 tons lower than the same period last lunar year, at a neutral level in recent years [4] - Raw materials: The Brent crude oil 05 contract rose to $104/barrel. The price of Northeast Asian ethylene decreased by $50/ton to $1400/ton month - on - month, and the price of Southeast Asian ethylene also decreased by $50/ton to $1400/ton month - on - month [4]

1. Report Industry Investment Rating - No information provided 2. Core Viewpoints - PP's domestic supply - demand pattern has improved, but the Middle East situation is volatile, causing large market fluctuations. It is recommended to temporarily exit the market and observe, while paying attention to the progress of downstream resumption after the festival and the Middle East situation [1] 3. Summary by Relevant Catalogs 3.1 Market Analysis - As of the week of March 20, the downstream PP operating rate increased by 0.65 percentage points to 46.36% week - on - week. After the Spring Festival, downstream demand recovered slowly as they were less accepting of high - priced raw materials. The operating rate of the plastic weaving industry, the main downstream of PP drawstring, decreased by 0.26 percentage points to 40.28% [1] - On March 26, new shutdown devices such as the third line of Ningxia Baofeng and the first line of Maoming Petrochemical were added. The PP enterprise operating rate dropped to around 73%, and the production ratio of standard drawstring increased to around 29% [1][4] - After the Spring Festival, petrochemical inventory has been reduced, and it is currently at a neutral level compared to the same period in previous years [1] - The cost of crude oil dropped from a high level and then stabilized. There were reports of potential negotiations between the US and Iran, but Iranian officials denied it. The Middle East situation affects energy and chemical industries. Although PP does not rely on Middle East imports, its upstream depends on Middle East LPG and crude oil. The shortage of raw materials led to reduced operation of olefin plants at home and abroad [1] - After the Lantern Festival, downstream rigid demand was released intensively, and the price of downstream BOPP film increased. However, downstream customers were resistant to high prices, and spot transactions were weak. The inability to resume navigation in the Strait of Hormuz still implies a reduction in PP supply [1] 3.2 Futures and Spot Market Conditions 3.2.1 Futures - The PP2605 contract opened higher, increased positions, and fluctuated. The lowest price was 8888 yuan/ton, the highest was 9246 yuan/ton, and it finally closed at 9120 yuan/ton, above the 20 - day moving average, with a gain of 2.39%. The open interest increased by 4112 lots to 343310 lots [2] 3.2.2 Spot - The spot prices of PP in different regions showed mixed trends. The drawstring was quoted at 8450 - 8980 yuan/ton [3] 3.3 Fundamental Tracking 3.3.1 Supply - On March 26, the PP enterprise operating rate dropped to around 73%, and the production ratio of standard drawstring increased to around 29% [4] 3.3.2 Demand - As of the week of March 20, the downstream PP operating rate increased by 0.65 percentage points to 46.36% week - on - week. The operating rate of the plastic weaving industry, the main downstream of PP drawstring, decreased by 0.26 percentage points to 40.28% [4] 3.3.3 Inventory - On Thursday, the petrochemical early - morning inventory decreased by 20,000 tons to 805,000 tons week - on - week, 15,000 tons lower than the same period last lunar year. Currently, petrochemical inventory is at a neutral level compared to the same period in previous years [4] 3.3.4 Raw Materials - The Brent crude oil 05 contract rose to $104 per barrel, and the CFR propylene price in China increased by $20 per ton to $1250 per ton week - on - week [4]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - The domestic futures market showed mixed performance on March 26, 2026, with some varieties rising and others falling. The market is significantly affected by factors such as geopolitical situations, supply - demand relationships, and cost changes. Due to the uncertainty of the Middle - East situation, it is recommended to be cautious when participating in the market, and some varieties are suggested to be observed on the sidelines [6][7]. 3. Summary by Relevant Catalogs 3.1. Commodity Performance and Capital Flow - **Futures Market Overview**: As of the close on March 26, domestic futures contracts showed mixed performance. Methanol, synthetic rubber, and asphalt rose by over 4%, while palladium fell by over 5%. Stock index futures generally declined, and treasury bond futures rose. In terms of capital flow, methanol 2605, glass 2605, and asphalt 2606 had capital inflows, while中证 500 2606,沪深 300 2606, and沪金 2606 had capital outflows [6][7]. 3.2. Market Analysis of Specific Varieties - **Copper**: The price of Shanghai copper opened high and closed low, with an overall increase. Supply - side factors such as tight overseas copper resources and low domestic inventory support the price, but the weak terminal demand restricts the upward space. The inventory is being digested smoothly during the peak season, but the short - term price is still under pressure due to the ongoing war [9]. - **Lithium Carbonate**: It opened high and closed low, with weak intraday fluctuations. Although the price increased slightly, the production decreased, and the inventory reduction was limited. The demand growth showed signs of weakening, and the market lacked support, with a difficult - to - change wide - range shock pattern in the short term [11]. - **Crude Oil**: EIA data showed that U.S. crude oil inventories increased more than expected. The situation in the Middle - East, especially the closure of the Strait of Hormuz, affected the supply. Although some measures were taken to relieve the supply pressure, the situation in the Middle - East is still uncertain, and the oil price fluctuates greatly [12][13]. - **Asphalt**: The supply decreased, and the demand gradually recovered. The inventory was at a low level, but the supply pressure was not substantially relieved. Due to the possible negotiation between the U.S. and Iran and the complex Middle - East situation, it is recommended to observe on the sidelines [14]. - **PP**: The downstream demand recovered slowly, and the enterprise's operating rate decreased. The cost was affected by the Middle - East situation, and the supply was expected to decrease. The market fluctuated greatly, and it is recommended to observe on the sidelines [16]. - **Plastic**: The operating rate decreased, and the downstream demand gradually recovered. The cost was affected by the Middle - East situation, and the supply was expected to decrease. The market fluctuated greatly, and it is recommended to observe on the sidelines [17][18]. - **PVC**: The supply decreased, and the demand gradually recovered. The social inventory decreased for the first time after the Spring Festival, but it was still at a high level. The upstream raw material supply was tight, and the market fluctuated greatly. It is recommended to observe on the sidelines [19][21]. - **Coking Coal**: It opened low and closed low, with a decline. The mine production resumed smoothly, but the downstream recovery was slow. The price increase has not been implemented, and the subsequent conflict situation needs to be observed [22]. - **Urea**: It opened high and closed high, with an increase. The supply was guaranteed, and the inventory continued to decrease. The market was in a stage of peak - season verification, and it was in a strong consolidation state, but it is necessary to be cautious about chasing the rise [23][24].

Report Industry Investment Rating - No information provided Core Viewpoints - PP's domestic supply - demand pattern has improved, but the market is volatile due to the changing Middle East situation. It is recommended to temporarily exit the market and observe the downstream resumption progress after the holiday and the development of the Middle East situation [1] Summary by Relevant Catalogs Market Analysis - As of the week of March 20, the downstream PP operating rate increased by 0.65 percentage points to 46.36% week - on - week. After the Spring Festival, the demand recovery was slow as downstream was not receptive to high - priced raw materials. The operating rate of plastic braiding, the main downstream of drawstring, decreased by 0.26 percentage points to 40.28%. On March 25, new shutdown devices such as the second line of Zhejiang Petrochemical were added, and the PP enterprise operating rate dropped to about 74%, with the drawstring production ratio rising to about 26%. After the Spring Festival, petrochemical inventory has decreased and is currently at a neutral level in recent years. The expected easing of the Middle East situation led to a decline in crude oil prices. The domestic PP supply is tight, and downstream is resistant to high prices, with weak spot transactions. If the Strait of Hormuz cannot resume navigation, the expectation of reduced PP supply remains [1] Futures and Spot Market - Futures: The PP2605 contract opened higher, then reduced positions and oscillated downward. The lowest price was 8,557 yuan/ton, the highest was 9,280 yuan/ton, and it closed at 8,975 yuan/ton, above the 20 - day moving average, with a decline of 3.93%. The position decreased by 360 lots to 339,198 lots [2] - Spot: Most spot prices of PP in various regions declined. The drawstring was quoted at 8,450 - 8,980 yuan/ton [3] Fundamental Tracking - Supply: On March 25, new shutdown devices such as the second line of Zhejiang Petrochemical were added, and the PP enterprise operating rate dropped to about 74%, with the drawstring production ratio rising to about 26% [4] - Demand: As of the week of March 20, the downstream PP operating rate increased by 0.65 percentage points to 46.36% week - on - week. After the Spring Festival, the demand recovery was slow as downstream was not receptive to high - priced raw materials. The operating rate of plastic braiding, the main downstream of drawstring, decreased by 0.26 percentage points to 40.28% [4] - Inventory: On Wednesday, the petrochemical early - morning inventory decreased by 80,000 tons to 825,000 tons week - on - week, 10,000 tons lower than the same period last lunar year. Currently, the petrochemical inventory is at a neutral level in recent years [4] - Raw Materials: The Brent crude oil 05 contract dropped to $100/barrel, and the CFR propylene price in China increased by $30/ton to $1,230/ton week - on - week [4]

Report Industry Investment Rating - No information provided Core View of the Report - The domestic supply - demand pattern of plastics has improved, but the Middle East situation is volatile, causing large market fluctuations. It is recommended to temporarily exit the market and observe, while paying attention to the progress of downstream resumption of production after the festival and the development of the Middle East situation [1] Summary by Relevant Catalogs Market Analysis - On March 25, new parking devices such as Tarim Petrochemical HDPE were added, and the plastic operating rate dropped to about 81.5%, currently at a moderately low level. As of the week of March 20, the downstream operating rate of PE increased by 3.76 percentage points to 37.59% week - on - week. After the Spring Festival, petrochemical inventories have been reduced and are currently at a neutral level in the same period in recent years. The expected easing of the Middle East situation has led to a decline in crude oil prices. New production capacities have been put into operation, and the plastic operating rate has recently decreased. After the Lantern Festival, downstream factories have increased their resumption of work, and the prices of agricultural films in North, East, and South China have continued to rise. However, downstream resistance to high prices has led to cautious procurement and weak spot transactions. If the Strait of Hormuz cannot resume navigation, the expectation of reduced plastic supply still exists [1] Futures and Spot Market Conditions - Futures: The plastic 2605 contract opened higher, increased positions, and oscillated downward. The lowest price was 8340 yuan/ton, the highest was 9101 yuan/ton, and it finally closed at 8715 yuan/ton, above the 60 - day moving average, with a decline of 4.21%. The position increased by 4893 lots to 319,820 lots [2] - Spot: Most of the PE spot market declined, with price changes ranging from - 600 to + 0 yuan/ton. LLDPE was reported at 8380 - 9570 yuan/ton, LDPE at 10430 - 11810 yuan/ton, and HDPE at 8600 - 9940 yuan/ton [3] Fundamental Tracking - Supply: On March 25, new parking devices such as Tarim Petrochemical HDPE were added, and the plastic operating rate dropped to about 81.5%, currently at a moderately low level [4] - Demand: As of the week of March 20, the downstream operating rate of PE increased by 3.76 percentage points to 37.59% week - on - week. After the fourth week of the Spring Festival holiday, downstream enterprises have gradually resumed production but have not returned to pre - holiday levels, showing seasonal changes [4] - Inventory: On Wednesday, the petrochemical early inventory decreased by 80,000 tons to 825,000 tons week - on - week, 10,000 tons lower than the same period in the lunar calendar last year, currently at a neutral level in the same period in recent years [4] - Raw materials: The Brent crude oil 05 contract fell to $100/barrel. The Northeast Asian ethylene price remained flat at $1450/ton week - on - week, and the Southeast Asian ethylene price also remained flat at $1450/ton [4]

Report Summary 1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints - PP domestic supply - demand pattern has improved, but downstream has a high - price resistance. With the high sentiment of chemical products, if the Strait of Hormuz fails to resume navigation, refinery production cuts will increase, and the recent PP price will fluctuate strongly. Attention should be paid to the progress of downstream resumption after the festival and the Middle East situation [1] 3. Summary by Related Catalogs 3.1. Market Analysis - As of the week of March 20, the PP downstream operating rate increased by 0.65 percentage points to 46.36% week - on - week. After the Spring Festival, downstream demand recovered slowly due to low acceptance of high - price raw materials. The operating rate of the plastic weaving industry, the main downstream of drawing materials, decreased by 0.26 percentage points to 40.28%. On March 24, new restarted devices led to a decline in the PP enterprise operating rate to about 76.5% (a relatively low level), and the production ratio of standard drawing materials dropped to about 25.5%. After the Spring Festival, petrochemical inventory decreased and is now at a neutral level compared to the same period in previous years. Cost - side: Trump's statement about suspending strikes on Iranian energy facilities caused a sharp drop in oil prices, but Iran denied the negotiation, and the decline in crude oil prices narrowed. The operating rate has slightly recovered recently but is still lower than at the end of February. After the Lantern Festival, downstream rigid demand was released, and the price of BOPP film increased. The Middle East situation affects the energy - chemical industry, and although PP doesn't rely on Middle - East imports, its upstream depends on Middle - East LPG and crude oil, and the Middle - East PP production capacity accounts for 9% of the world and about 25% of global polyolefin exports [1] 3.2. Futures and Spot Futures - The PP2605 contract opened lower, reduced positions, and oscillated downward. The lowest price was 9,073 yuan/ton, the highest was 9,542 yuan/ton, and the final closing price was 9,114 yuan/ton, above the 20 - day moving average, with a decline of 3.82%. The position decreased by 59,592 lots to 339,558 lots [2] 3.3. Spot - PP spot prices in different regions showed mixed trends. The price of drawing materials was reported at 8,770 - 9,580 yuan/ton [3] 3.4. Fundamental Tracking - Supply side: On March 24, new restarted devices led to a decline in the PP enterprise operating rate to about 76.5% (a relatively low level), and the production ratio of standard drawing materials dropped to about 25.5%. Demand side: As of the week of March 20, the PP downstream operating rate increased by 0.65 percentage points to 46.36% week - on - week. After the Spring Festival, downstream demand recovered slowly due to low acceptance of high - price raw materials. The operating rate of the plastic weaving industry, the main downstream of drawing materials, decreased by 0.26 percentage points to 40.28%. Petrochemical early - morning inventory on Tuesday decreased by 15,000 tons to 905,000 tons week - on - week, 55,000 tons higher than the same period in the previous lunar year, and is now at a neutral level compared to the same period in previous years. Raw material: The Brent crude oil 05 contract dropped to $102/barrel, and the CFR propylene price in China increased by $70/ton week - on - week to $1,200/ton [4]