On February 9, it was reported that Chengzhi Co., Ltd. (000990) recently announced that its subsidiary, Qingdao Chengzhi Huaqing Ultra-High Molecular Weight Polyethylene Project, has successfully commenced trial production. The project was approved by the company's board of directors on August 30, 2022, and is being constructed in the Dongjiakou Economic Zone of Qingdao West Coast New Area. Chempricehub's analysis of polyethylene indicates a bearish score of -1. The successful trial production of the subsidiary's ultra-high molecular weight polyethylene project in Qingdao Chengzhi Huaqing increases the supply in the polyethylene market, potentially putting downward pressure on spot prices. Combined with the latest polyethylene futures market conditions (e.g., contract 2605 closing at 6,812 yuan/ton, with a change of -60), the supply-demand balance leans toward a looser structure. The launch of new production capacity reinforces expectations of oversupply, further weighing on futures prices. Therefore, a score of -1 indicates a generally bearish impact.
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