On February 4, Chengzhi Co., Ltd. announced that the POE and ultra-high molecular weight polyethylene project invested by its Qingdao Huaqing has completed equipment installation, debugging, and trial production preparations. The ultra-high molecular weight polyethylene unit successfully achieved a one-time feed trial run, with stable operation and excellent product quality. The project is implemented by Qingdao Chengzhi Huaqing, with a total investment of 2.353 billion yuan and covering an area of 528 acres. The first phase includes the construction of a 40,000-ton/year ultra-high molecular weight polyethylene production line, while simultaneously planning for 2×100,000-ton/year POE units.

PriceSeek analysis of ultra-high molecular weight polyethylene, long-short score: -1.5
Chengzhi Co., Ltd. announced the successful trial run of the ultra-high molecular weight polyethylene unit, adding 40,000 tons/year of capacity. The increase in supply exerts downward pressure on spot prices. Combined with polyethylene futures data (e.g., the 2605 contract closing price of 6,777 yuan/ton, down 79 yuan, with open interest of 522,504 lots), the recent downward trend is evident. The commissioning of new capacity may intensify bearish sentiment in the futures market, reinforcing the negative impact.

POE, long-short score: -0.5
Chengzhi Co., Ltd. plans to construct 2×100,000-ton/year POE units. The expectation of future supply increases exerts slight downward pressure on spot prices. The impact during the planning phase is limited, but market expectations of supply expansion may suppress current spot price trends.