The scope of the new standard is made of polyethylene. The cling film produced is expanded to cling film made of resins such as polyethylene (PE), polyvinyl chloride (PVC) and polyvinylidene chloride (PVDC). The resin must be a food grade raw material, and the additives and amount used must also be used. Must comply with the provisions of GB-9685, cling film should be marked "food use" words. However, from the current situation of cling film, even the most recognized PE cling film in the industry, there are also masses of dragons and fishes:
1. Some manufacturers use industrial-grade and agricultural-grade PE membranes instead of food-grade PE membranes, which poses a threat to consumers' health.
2. Some manufacturers add excessive plasticizers in order to increase the viscosity and stretch of the cling film.
3. DEHA, a plasticizer forbidden from being used in PVC cling film by the state, is still used in some foreign-funded enterprises in China. This substance is potentially carcinogenic.
4. Some well-known supermarket chains are still using PVC cling film to wrap foods containing fats, and there is a great potential for safety.
Plastic Weekly: Breaking through the previous highs, more than one single to continue to hold last week LLDPE futures continued to rise. The main contract 1005 closed at 12,495 yuan last Friday, up 205 yuan from the previous week.
Due to tight supply, ethylene in Asia continued to surge, CFR Northeast Asia rose by 8.5 US dollars/ton, and Southeast Asia rose by US$6.5/ton.
Due to problems in the Middle East installations, the price of HDPE film in Asia increased by US$10/ton last week. In US$1275/ton CFR, LDPE rose by US$15/ton, and in US$1,445/ton CFR China, LLDPE rose by US$20/ton. USD 1365/ton CFR China. On December 22, severe storms and heavy rains struck the coast of Saudi Arabia, including Yanbu, causing the local circuit to be interrupted. Last week, the quotation from traders was further increased. HDPE film traders reported 1,300 U.S. dollars per ton, and CFR China was partially traded at 1,270 U.S. dollars per tonne CFR China. The increase in the price has boosted the profits of the PE market.
On the domestic front, supported by upstream prices of raw materials, upstream petrochemical manufacturers offer stable prices, only Yangzi Petrochemical raised 200 yuan/ton, and CNPC Southwest raised 100 yuan/ton. In the down stream, various agricultural films are in the middle of production and sales. Therefore, downstream businesses are more willing to wait and see, and they are generally trading on the spot market.
In terms of new installations, Panjin Ethylene started its new naphtha cracker at 450,000 tons/year and is expected to produce 300,000 tons/year of HDPE/LLDPE and 250,000 tons/year of polypropylene units. The HDPE/LLDPE and PP units are currently being tested and are expected to be put into production in late December. The new unit of Tianjin Lianhua is scheduled to be completed by the end of the year and is scheduled to drive on January 15. The drive of new units in Panjin Ethylene and Tianjin Lianhua will become the focus of recent attention.
The domestic supply has gradually increased. At the time when new production capacity has not yet been fully released, there are hidden problems in the supply side.
The cold weather in the United States boosted the demand for heating oil. Crude oil prices have already approached 80 US dollars, and the market outlook may be dominated by strong oscillations. Due to the limited resources of the PE market and the support of upstream costs, PE prices will remain firm. Businesses are optimistic about the market outlook. Based on better expectations for upstream raw materials, Sinopec/PetroChina’s price policy in January was stable.
Liansu has already broken through the previous high level, this week or will continue to show strong oscillations. It is recommended to continue to hold more than one, do not easily short.
