SunSirs: The Demand Was Average, and PE Prices Were Mixed in April

https://www.chemnet.com   May 04,2023 SunSirs

　　According to the monitoring of the Commodity Market Analysis System of SunSirs, the domestic price of LLDPE (7042) was 8,275 RMB/ton on April 1, and the average price on April 27 was 8,350 RMB/ton, with an increase of 0.90% during the period.

　　According to the monitoring of the Commodity Market Analysis System of SunSirs, the average ex factory price of LDPE (2426H) was 8,887 RMB/ton on April 1, and 8,725 RMB/ton on April 27, with a decrease of 1.83% during the period.

　　According to the monitoring of the Commodity Market Analysis System of SunSirs, the average ex factory price of HDPE (5000S) on April 1st was 8,633 RMB/ton, and the average price on April 27th was 9,090 RMB/ton. During this period, the quotation increased by 5.29%.

　　Analysis review

　　In April, the PE market was mixed, with narrow adjustments being the main trend, with HDPE prices showing a significant increase. On the cost side, crude oil surged in the first half of the month, followed by high volatility, providing some support to the PE market. Most petrochemical companies had raised their prices, and traders were following suit, but the room for price increases was little. On the supply side, there were many repairs to HDPE devices, and due to insufficient supply, the quotation was significantly increased. Downstream demand, overall lower than expected, limited its upward space. In terms of downstream demand and packaging film, with purchasing mainly on demand; The peak season for plastic mulch film was gradually coming to an end, and the demand for plastic greenhouse film was average, with insufficient order follow-up.

　　In the second half of the month, crude oil prices fluctuated and fell, with insufficient support on the cost side; The later maintenance devices were restarted operation, with expectations of an increase in PE supply and supply pressure was still present; Agricultural film entered the off-season of demand, and market demand weakened. Other downstream industries were expected to have little change in demand.

　　Market outlook

　　PE analysts from SunSirs predict that PE may mainly adjust.

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