A trade war with China, polyethylene market setback

In March 2018, the market is not duly demand for enjoying, but suffered a polyethylene market downturn of Waterloo, clinch a deal group always weak, high inventory pressure is always useful no relief. In march, the federal reserve to raise interest rates to cash, consistent with market expectations, and on the surface of the macro focus on sino-us trade war. The President of the United States announced trump, will be worth up to $50 billion (for China RMB 316. 5 billion) Duties of goods. China's Ministry of Commerce announced 232 measures against the United States imported steel and aluminium products interrupts cuts product list, for about $3 billion since the us import tariffs. Influenced by system risk, polyethylene (PE) market in again through the black Friday, March 23, commodity markets fell, polyethylene futures, spot are not immune, quick market lower, especially is chemical products. In April, the domestic sichuan petrochemical, zhenhai refining, Shanghai petrochemical, shenhua yulin have maintenance plan, supply side is expected to cut, but in March the high inventory pressure is still there. Film, film and other requirements to enter the off-season, and sino-us trade war started in late march, China's currency balance factors such as inheritance restriction demand recovery baidu optimization, is expected to market is still not optimistic about in April. Considering the early market persist down, as lower prices, may be in a certain period of time to stimulate demand, market phases, are small rebound, group trend is bearish.