1. Crude oil price fluctuation
As the initial raw material of LLDPE, the change of international crude oil price will directly affect the market price of LLDPE. In recent years, the proportion of natural gas liquid in ethylene production has increased year by year. With the increase of the proportion, its influence on the price of ethylene and LLDPE will increase accordingly in the future.
2. The influence of ethylene supply and demand
Because LLDPE is produced according to the path of "crude oil-naphtha-ethylene-LLDPE", the capacity, output, trade and price in Asia will have a direct impact on the market price of LLDPE.
3.LLDPE capacity and output
The increase or decrease of LLDPE capacity and output has an impact on the market price.
Due to the continuous production of LLDPE, the price of LLDPE in this area will change accordingly due to the change of supply and demand during the period when production enterprises stop production and overhaul equipment every year.
4. International trade price
The Middle East is the largest LLDPE producing area in the world. The region is rich in crude oil and natural gas resources, and the cost of raw materials is low, which makes the price of LLDPE imported from this region lower than the average price in the international market.
5. Downstream demand changes
The market price of LLDPE will also fluctuate with the change of downstream demand. When the downstream consumption increases and the supply is insufficient, the market price will rise, and when the downstream consumption weakens and the upstream supply is sufficient, the market price will fall.
6. Substitute product price
When the market price of LLDPE is high, and the price of alternative products such as low-density polyethylene or high-density polyethylene is relatively low, this will affect the price decline.
7. Product inventory changes
Changes in inventory will also affect the market price of LLDPE. For example, if regional stocks increase and traders are willing to ship, prices will go down; Insufficient regional stocks and traders hoarding goods will push up prices.
8. Macroeconomic situation
The healthy and rapid development of macro-economy has a strong supporting and pulling effect on LLDPE market. Macroeconomy mainly affects the demand of downstream industries, and then affects the changes of LLDPE market. In other words, macroeconomic performance is a barometer of LLDPE market demand and has an important impact on its price changes.