Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints - The polyolefin market's driving force may shift from cost support to the weak industrial reality. With downstream industries entering the holiday season and purchasing power weakening, the self - driving force of polyolefin remains weak. The short - term geopolitical situation is highly uncertain, and the correlation between polyolefin and oil prices is high. [6] - Short - term attention should be paid to the pulse market that may be brought by uncertain factors such as the Middle East situation. Seize the opportunity of rising oil prices to short. During the price decline, focus on the structural arbitrage opportunities arising from the differentiation of supply pressure between PP and PE. [6] 3. Summary by Directory 3.1 Market Review and Outlook - L2605 opened lower, fluctuated upward during the session, and closed higher at 6775 yuan/ton, up 16 yuan/ton (0.24%), with a trading volume of 280,000 lots and a decrease of 5,995 lots in positions to 512,614 lots. PP2605 closed at 6688 yuan/ton, up 29 yuan (0.44%), with a decrease of 1,773 lots in positions to 488,600 lots. [6] 3.2 Industry News - On February 10, 2026, the inventory level of major producers was 460,000 tons, a decrease of 40,000 tons (8.00%) from the previous working day. The inventory on the 22nd day of the 12th lunar month last year was 475,000 tons. [7] - The PE market price continued to decline weakly. The LLDPE price in North China was 6,570 - 6,900 yuan/ton, 6,600 - 7,000 yuan/ton in East China, and 6,800 - 7,100 yuan/ton in South China. [7] - The mainstream price of propylene in the Shandong market was temporarily 6,400 - 6,480 yuan/ton, unchanged from the previous working day. The market supply had no obvious pressure, the production enterprises' shipments were okay, and the overall intention to stabilize the market was strong. Downstream factories' stocking was gradually completed, mainly for rigid demand procurement, and the overall market transaction was relatively stable. [7] - The PP market price was mostly sorted out. The mainstream price of drawn wire in North China was 6,460 - 6,570 yuan/ton, 6,540 - 6,650 yuan/ton in East China, and 6,630 - 6,810 yuan/ton in South China. [7] 3.3 Data Overview - The report presented multiple data charts, including L basis, PP basis, L - PP spread, crude oil futures main contract settlement price, two - oil inventory, and two - oil inventory year - on - year increase/decrease rate, with data sources from Wind and Zhuochuang Information. [9][12][17]

Group 1: Report Information - Report Name: Polyolefin Daily Report [1] - Date: February 4, 2026 [2] - Research Team: Energy and Chemical Research Team [4] Group 2: Market Quotes - Futures Market Quotes: Plastic 2701 opened at 6954 yuan/ton, closed at 6912 yuan/ton, down 68 yuan/ton (-0.97%); Plastic 2605 opened at 6890 yuan/ton, closed at 6865 yuan/ton, down 80 yuan/ton (-1.15%); Plastic 2609 opened at 6931 yuan/ton, closed at 6916 yuan/ton, down 67 yuan/ton (-0.96%); PP2701 opened at 6668 yuan/ton, closed at 6706 yuan/ton, down 22 yuan/ton (-0.33%); PP2605 opened at 6728 yuan/ton, closed at 6730 yuan/ton, down 44 yuan/ton (-0.65%); PP2609 opened at 6746 yuan/ton, closed at 6757 yuan/ton, down 43 yuan/ton (-0.63%) [5] Group 3: Market Review and Outlook - Market Performance: L2605 opened lower, traded at a low level during the session, and closed down at 6865 yuan/ton, down 80 yuan/ton (-1.15%), with a trading volume of 540,000 lots and an increase in positions of 15,259 lots to 511,685 lots; PP2605 closed at 6730 yuan/ton, down 44 yuan, a decline of 0.65%, with an increase in positions of 229 lots to 509,900 lots [6] - Market Drivers: Polyolefin prices are highly correlated with crude oil. As crude oil gives back geopolitical risk premiums, the driving force of the polyolefin market may gradually shift from cost support to the weak industrial reality. With downstream industries entering the holiday season and procurement weakening, the internal driving force of polyolefins remains weak [6] - Strategy Suggestions: In the short term, pay attention to the pulse market that may be brought by uncertain factors such as the Middle East situation, and take the opportunity of rising oil prices to short; during the price decline, focus on the structural arbitrage opportunities arising from the differentiation of supply pressure between PP and PE [6] Group 4: Industry News - Inventory: On February 3, 2026, the inventory level of major producers was 505,000 tons, a decrease of 95,000 tons from the previous working day, a decline of 15.83%. The inventory before the Spring Festival last year was 470,000 tons [7] - PE Market: The PE market price declined weakly. The LLDPE price in North China was 6,630 - 6,950 yuan/ton, in East China was 6,830 - 7,200 yuan/ton, and in South China was 6,900 - 7,250 yuan/ton [7] - Propylene Market: The mainstream price of propylene in the Shandong market was temporarily referred to as 6,390 - 6,450 yuan/ton, an increase of 30 yuan/ton from the previous working day. As the Spring Festival approaches, some downstream factories enter the market to purchase, the demand for propylene improves temporarily, the actual order auction premium of production enterprises is common, and the overall trading atmosphere improves slightly [7] - PP Market: The PP market price continued to decline. The mainstream price of drawing materials in North China was 6,520 - 6,630 yuan/ton, in East China was 6,540 - 6,700 yuan/ton, and in South China was 6,650 - 6,800 yuan/ton [7] Group 5: Data Overview - Figures: The report includes figures such as L basis, PP basis, L - PP spread, crude oil futures main contract settlement price, two - oil inventory, and two - oil inventory year - on - year increase or decrease rate [9][12][17] - Data Sources: The data sources include Wind and Zhuochuang Information, as well as the Research and Development Department of CCB Futures [10][12][14][15][16][17]