SunSirs: Lack of Favorable Support, China PE is still Weak and Declining

https://www.chemnet.com   Jul 29,2024 SunSirs

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LLDPE (7042) was 8,478 RMB/ton on July 18th, and the average price was 8,411 RMB/ton on July 25th, with a price drop of 0.79% during this period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LDPE (2426H) was 10,137 RMB/ton on July 18th, and the average price was 10,037 RMB/ton on July 25th, with a price drop of 0.99% during this period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of HDPE (5000S) was 8,275 RMB/ton on July 18th, and the average price was 8,175 RMB/ton on July 25th, with a price drop of 1.21% during this period.

The trend of PE continued to decline this week. International crude oil prices have fallen, and the cost side is bearish on the PE market. With the restart of some PE maintenance units, there are still expectations of an increase in the supply side. The operating rate of downstream product industry has decreased, and demand is in the traditional off-season, with limited market order follow-up. The market mentality is bearish, the trading atmosphere on the market is not good, the quotes of production enterprises are loose, traders are following the trend and lowering prices, and the main focus is on offering discounts for shipments.

On July 26th, the PE L2409 contract on the Dalian Commodity Exchange opened at 8,288 RMB and closed at 8,291 RMB, a decrease of 4 RMB, with a maximum of 8,320 RMB and a minimum of 8,274 RMB, a decrease of 0.05%. This week, the PE futures market fell weakly, which is bearish for the spot market.

There is an expectation of an increase on the supply side; Agricultural film is in the off-season of demand, with low factory start-up rates and low load operation; The demand for low voltage brushed products is average, and there is insufficient follow-up on new orders; The trend of PE futures market is weak; There is currently no positive support, and it is expected that PE will continue to operate weakly.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

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