SunSirs: Negative Pressure, China PE Continues to Decrease in July

https://www.chemnet.com   Aug 01,2024 SunSirs

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LLDPE (7042) was 8,622 RMB/ton on July 1, and the average price was 8,404 RMB/ton on July 31, with a price drop of 2.53% during this period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LDPE (2426H) was 10,650 RMB/ton on July 1st, and the average price was 9,950 RMB/ton on July 31st, with a price drop of 6.57% during this period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of HDPE (5000S) was 8,595 RMB/ton on July 1st, and the average price was 8,137 RMB/ton on July 31st, with a price drop of 5.32% during this period.

The trend of PE continued to decline in July, with high-pressure products experiencing a significant decline. The international crude oil market fluctuated weakly in July, and the cost side was somewhat bearish on the PE market. With the gradual restart of the PE maintenance equipment in the early stage, there is an expected increase in the supply side. On the demand side, it is in the traditional off-season, with a decrease in the operating rate of downstream product industries, limited order follow-up, a bearish market mentality, and a poor atmosphere for on-site transactions; There is no positive news in the macro aspect; There are many negative factors, with production companies continuously lowering their quotes and traders subsequently lowering their prices, with a focus on offering discounts for shipments.

On July 30th, the Dalian Commodity Exchange PE L2409 contract opened at 8,234 RMB and closed at 8,172 RMB, a decrease of 78 RMB, with a high of 8,245 RMB and a low of 8,164 RMB, a decrease of 0.95%. The PE futures market fell weakly in July, and the bearish futures market suppressed the spot market.

The high-pressure unit of Qilu Petrochemical will start operating at the end of July, and other units will also be restarted gradually; In addition, the LLDPE and LDPE units of Zhongtian Hechuang were restarted at the end of July and are currently in operation; The maintenance of newly added devices in August has decreased, and there are expectations of an increase in the supply side; The demand for PE market may begin to rebound in mid to late August, and agricultural film will enter the seasonal peak season in September. At the beginning of August, market demand may not increase significantly, and there is currently no positive support. It is expected that PE will continue to operate weakly in the short term.

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

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