【Analysis of market conditions】：
First of all, the recent market transactions have been obviously weak, and the downstream of the pre-replenishment has begun to become very cautious as the market continues to be weak. The market may face greater pressure again. The consumption peak season in the middle and late quarters of the fourth quarter of each year ends, and demand will be even weaker. However, this year, due to the upside-down price difference between the internal and external disks, it is difficult to increase the volume of polyethylene imports, resulting in a tight supply of imported materials and a gap in import volume. In the short term, the spread continues to strengthen and the supply side is tight, and short-term polyethylene rebound is expected.
Second, in the later stage, we need to focus on the guidance of the monthly difference to the market. According to our actual survey, downstream demand has improved slightly after the power restriction measures were lifted, and downstream companies have intention to stock up in November. The key to the current fourth quarter is whether the squeeze of the energy crisis on the supply side will continue. If it continues, there will be a rebound in the fourth quarter, but there will be a high probability of a new round of decline in the first quarter of next year. Another possibility is that the current market is directly weak until the second quarter of next year. At this stage, it is not clear which trend the market chooses, but the end of the best rise in the year is clear, and the downward trend of polyolefins may have begun.
Third, in 2021, we have repeatedly emphasized that fiscal easing, monetary easing, and inflation are major trends. When the epidemic is present, inflation will be there. The current energy crisis interprets this pattern of inflation to the extreme. However, the market demand in the third quarter of 2021 has clearly been greatly suppressed. Especially in the context of repeated speculation on the energy crisis in the current market, the room for broad fiscal and currency has basically ended ahead of schedule. Therefore, we are pessimistic about the general trend in the later period, and the medium-term deflation pattern may be on the way.