SunSirs: Demand for PE Rises and Falls during the Off-season in China

https://www.chemnet.com   Aug 12,2024 SunSirs

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LLDPE (7042) was 8,371 RMB/ton on August 1st, and the average price was 8,328 RMB/ton on August 8th, with a price drop of 0.51% during this period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LDPE (2426H) was 9,912 RMB/ton on August 1st, and the average price was 10,062 RMB/ton on August 8th, with a price increase of 1.51% during this period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of HDPE (5000S) was 8,137 RMB/ton on August 1st, and the average price was 8,137 RMB/ton on August 8th, during which the quotation was temporarily stable.

Recently, the price of PE has fluctuated, with linear products experiencing a narrow range of weak downward adjustments. High voltage product quotations have increased, while low-voltage product quotations remain strong. On August 8th, international crude oil futures rose, oil prices rose, and there was some support on the cost side. With the continuous restart of PE maintenance equipment, there is an expected increase in the supply side; On the demand side, it is in the traditional off-season, with limited order follow-up, a bearish market mentality, and a poor trading atmosphere on the market. Traders mainly offer small discounts for shipments, and linear product quotations are adjusted narrowly and weakly. However, the prices of high-pressure products are rising, and due to the impact of the Middle East situation, imported sources may be affected, leading to a significant increase in the prices of high-pressure products.

On August 9th, the Dalian Commodity Exchange PE L2409 contract opened at 8,162 RMB and closed at 8,150 RMB, a decrease of 35 RMB, with a maximum of 8,220 RMB and a minimum of 8,139 RMB, a decrease of 0.43%. Recently, the weak performance of PE futures has been the main factor, providing limited support for the spot market.

As the maintenance equipment restarts one after another, there is an expected increase in the supply side; In mid to late August, the demand for greenhouse film market may begin to rebound, and the market will enter the reserve stage. PE is expected to rise in the short term, but the upward adjustment space may be limited.

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

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