Report Summary Investment Rating - No investment rating provided in the report Core Viewpoint - LLDPE is in a volatile market with funds seeking safety. The upstream inventory has been transferred, and downstream demand is sluggish due to approaching holidays. The supply - demand contradiction is currently not significant, but the inventory accumulation during the Spring Festival and the destocking rate after the festival should be monitored [1][2] Detailed Summary Fundamental Tracking - **Futures Data**: The closing price of L2605 is 6787, with a daily increase of 0.18%. The trading volume is 315041, and the open interest decreased by 8697 [1] - **Basis and Spread**: The 05 - contract basis is - 217, and the 05 - 09 contract spread is - 49 [1] - **Spot Prices**: The spot prices in North China, East China, and South China are 6570, 6650, and 6650 yuan/ton respectively, remaining unchanged from the previous day [1] Spot News - The futures market is volatile. Upstream enterprises slightly lowered their quotes after inventory transfer. Yulong Petrochemical resumed production of 7042. The downstream is gradually on holiday, resulting in cold trading. The overseas market is approaching a halt due to the approaching holiday, with limited offers and inactive trading [1] Market Condition Analysis - The price of crude oil, the raw material, has stabilized after a decline. The ethylene monomer segment is weak, and the profit of the PE ethylene process has recovered. The demand for agricultural film in the near - end downstream is weakening, while the packaging film industry maintains rigid demand. On the supply side, BASF Zhanjiang is gradually in trial production. The maintenance plan in February has decreased month - on - month, and some FD has switched back to standard products. There is currently no significant fundamental contradiction after inventory transfer before the Spring Festival [2] Trend Strength - The LLDPE trend strength is - 1 [3]