Core Logic: 1. Supply Side: According to Longzhong Information, the PE supply is influenced by the planned restart of facilities such as Maoming Petrochemical and Fushun Petrochemical, with only additional planned maintenance at Zhongyuan Petrochemical. The overall expectation is for an increase in supply. For PP, Jinlianchuang reports that the planned maintenance of full-density facilities at Guangdong Petrochemical, linear units at Zhongyuan Petrochemical, and high-pressure facilities at Lanzhou Petrochemical will somewhat offset supply pressure. However, considering the restart of previously halted facilities and the commencement of new production capacity at Guangxi Petrochemical, a sufficient overall supply is anticipated. 2. Demand Side: The PE production for greenhouse film is currently in its peak season, with the production pace from north to south driving steady order accumulation and pushing the industry operating rate to continue increasing slightly. The PP demand side is also on an upward trend. Under market demand support, downstream factories are operating, but short-term demand continues to lag behind, insufficient to sustain the large supply volume. 3. Cost Support Strengthened: The U.S. has intensified sanctions against Russia. Alongside a decrease in worries over trade disputes, the decline in U.S. commercial crude oil inventories has supported oil prices. Propane, influenced by oil prices, may see short-term cost support for PDH production increase.

Market Outlook: Volatile