At the beginning of 2020, the "thunder" between the United States and Iran exploded. The three major shock waves of the "decisive battle" between the United States and Iran, the resurgence of the Middle East, and the "earthquake" in the crude oil market have set off a frenzy in the financial market. As a small branch, polyethylene market is still subject to some impact, linear futures rebounded in early January, but the momentum is obviously insufficient, the in stock market has been depressed for a long time, crude oil rise to encourage some businesses and downstream corresponding replenishment, some resources less product prices. However, as the end of the year is approaching, downstream factories will gradually enter the end of procurement. In the later period, work will be shut down one after another. Demand will shrink. The rise in the market is always weak and limited. Considering the inevitable increase in inventory after the year, prices will still have downward pressure. It is expected that the pre-holiday shock consolidation will be the main factor. First of all, the situation in the Middle East is unpredictable in the crude oil market, if the war is tight, will push up oil prices, otherwise oil prices will fall. However, from the trend in recent years, due to the continuous expansion of coal chemical industry, the voice of oil enterprises is reduced, the trend of crude oil and polyethylene is stripped, and the correlation is gradually decreasing. If crude oil rises sharply, the profits of oil companies will shrink further, which may affect some oil-based polyethylene production. Second, near the end of the year, the market is not willing to trade, demand is flat. Due to the downward trend of the 2019 market throughout the year, the market mentality deviation, before the festival more stock cautious, appropriate replenishment of inventory after turning to the wait-and-see. Social stocks began to accumulate from mid-to-late January. In the process of digesting resources at the annual meeting, it is generally believed that prices are difficult to rise. Finally, Zhejiang Petrochemical will be put into production at the end of 2019 and the beginning of 2020. On January 13, it was reported that HDPE has been T60-800 pellets off the production line, full density has been put into production, and 7042 powder has been produced. The device is designed to produce 300000 tons/year of HDPE and 450000 tons/year of full density. It is located in Zhoushan, Zhejiang Province, and is an integrated cracking device. Dalian Hengli ethylene cracking plant plans to put into operation around the Spring Festival. New devices are put into operation, domestic supply increases, and general competitive pressure increases.