SunSirs: Supply Increase, China PE Market is Weak

https://www.chemnet.com   Aug 20,2024 SunSirs

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LLDPE (7042) was 8,318 RMB/ton on August 9th, and the average price was 8,296 RMB/ton on August 16th, with a price drop of 0.26% during this period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LDPE (2426H) was 10,116 RMB/ton on August 9th, and the average price was 10,100 RMB/ton on August 16th, with a price drop of 0.16% 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 9th, and the average price was 8,137 RMB/ton on August 16th, during which the quotation was temporarily stable.

Recently, there has been a narrow and weak adjustment in polyethylene prices. International oil prices are showing an upward trend, with some support on the cost side. In the second quarter, the spring inspection equipment is relatively concentrated, and in the third quarter, with the gradual restart of polyethylene maintenance equipment, there is an expected increase in the supply side. According to statistics, as of August 15th, the total production of polyethylene by domestic enterprises was 555,900 tons, an increase of 14,200 tons compared to the previous period; In terms of demand, the demand for greenhouse film has entered a reserve period, and downstream production rates have rebounded, with orders gradually following up; At the same time, the operating rate of packaging film enterprises has slightly increased, and market purchases are mainly made at low prices, with traders offering small discounts.

There is an expectation of an increase on the supply side; Demand side consumption is expected to increase, boosted by consumption during the Mid Autumn Festival and National Day holidays in August and September, resulting in a double increase in supply and demand. It is expected that polyethylene may rise slightly, but the upward adjustment space may be limited.

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