SunSirs: China PE Prices Fluctuate in August

https://www.chemnet.com   Sep 02,2024 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 8,300 RMB/ton on August 30th, with a price drop of 0.85% 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 10,383 RMB/ton on August 29th, with a 4.75% increase in quotation 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 8,175 RMB/ton on August 30th, with a price increase of 0.46% during this period.

PE prices fluctuated in August, with linear products mainly operating in a narrow and weak range. As the end of the month approached, prices rose slightly, while high-voltage products saw a significant increase and low-voltage product quotations remained slightly firm with slight fluctuations. High voltage products are on the rise, mainly due to the impact of the Middle East situation and concerns about a decrease in imported goods arriving at ports; In addition, the maintenance of some LDPE devices has an impact. In the second quarter, the spring inspection equipment was relatively concentrated. In the third quarter, with the continuous restart of PE maintenance equipment, there is an expected increase in the supply side. The consumption of petrochemical inventory is slow, and the inventory level is higher than last year, leading to increased supply pressure. The demand is gradually transitioning from the traditional off-season to the peak season, and the overall market order follow-up is limited. The market mentality is bearish, and the atmosphere of on-site transactions is not good. Traders mainly offer small discounts for shipments. Downstream maintenance of essential procurement, cautious procurement, and no significant improvement in transactions.

On August 29th, the PE L2409 contract on the Dalian Commodity Exchange opened at 8,160 RMB and closed at 8,186 RMB, up 7 RMB, with a maximum of 8,207 RMB and a minimum of 8,151 RMB, up 0.09%. The overall PE futures market in August was weak and began to fluctuate strongly in the latter half of the month.

At the end of August, the linear product quotation slightly increased, and the agricultural film production rate slowly increased, but decreased compared to the same period last year, indicating a low willingness to stock up. The maintenance device restarts, and there is an increasing trend in the supply side; During the peak consumption season of "Golden September and Silver October" on the demand side, orders in the agricultural film industry are gradually accumulating, and there are positive expectations on the consumer side; It is expected that the cost of oil production will have some support, while the cost of coal production will remain unchanged; PE is expected to fluctuate and rise slightly, but the upward space is limited.

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

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