1. Polyethylene Linear Low Density Polyethylene (LLDPE) is a high-pressure or low-pressure polymerization product of ethylene and a small amount of higher α-olefins (such as butene-1, hexene-1, octene-1, tetramethylpentene-1, etc.). ) Under the action of catalyst.
2. The molecular structure of conventional LLDPE is characterized by its linear main chain, few or no long branches, but some short branches. The absence of long branches makes the polymer more crystalline.
3.LLDPE futures will be listed and traded soon, and the price trend of LLDPE has become a topic of concern to market participants. The premise of analyzing and grasping LLDPE price is to understand the main factors that affect LLDPE price.
4. Overall, the upstream raw material price and the relationship between supply and demand constitute the main reasons for the price change of LLDPE. In addition, policies and regulations also affect the price trend of LLDPE. This paper will first introduce the production process of LLDPE, analyze the influence of the fluctuation of raw material price on LLDPE price, then introduce the influence of supply and demand on LLDPE price, and finally introduce the policies and regulations related to LLDPE.
5. The influence of upstream raw material price fluctuation on LLDPE price
As the upstream raw materials of LLDPE, the price fluctuation of crude oil, naphtha and monomer will inevitably cause the price fluctuation of LLDPE, which is a long-term impact driven by cost.
(1) crude oil
The oil price we see now is a futures price, and the production and processing of polyethylene have a certain period, so the rise and fall of crude oil will not have a cost impact on the spot of PE on that day, and its cost drive will be delayed to a certain extent.
(2) Naphtha
For PE, naphtha, not crude oil, has the greatest impact on the cost. At present, most polyethylene plants are integrated plants, that is, these plants purchase naphtha instead of ethylene monomer.
(3) Ethylene monomer
This is the composition of the production cost of polyethylene in China. Raw materials (monomer and × olefin) account for more than 87% of the cost factor. Other factors are relatively stable in the production cost of polyolefin, so it can be said that the change of monomer price is the most important factor affecting the cost of polyolefin.