SunSirs: Lack of Favorable Conditions, China PE Market is Weak

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

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LLDPE (7042) was 8,296 RMB/ton on September 2, and the average price was 8,251 RMB/ton on September 11, during which the quotation fell by 0.54%.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LDPE (2426H) was 10,400 RMB/ton on September 2, and the average price was 10,350 RMB/ton on September 11, during which the quotation fell by 0.48%.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of HDPE (5000S) was 8,225 RMB/ton on September 2, and the average price was 8,200 RMB/ton on September 11, during which the quotation fell by 0.30%.

The price of polyethylene is running narrowly and weakly. The recent decline in international oil prices has weakened cost support, which is bearish for the polyethylene market. There are expectations of an increase in the supply side. According to data statistics, as of September 10th, the inventory of two barrels of plastic oil was 800,000 tons, a decrease of 1.23% compared to the previous month and an increase of 15.94% year-on-year. Although there has been a decrease in the previous month, the year-on-year data has increased, and the pressure on the supply side is still present. The downstream of the demand side is in the peak demand season, and with the Mid Autumn Festival approaching, downstream factories are increasing their inventory replenishment behavior. However, overall support is limited, with rigid demand procurement as the main focus and low enthusiasm for intermediaries to enter the market.

On September 11th, the Dalian Commodity Exchange polyethylene L2501 contract opened at 7,891 RMB and closed at 7,931 RMB, a decrease of 5 RMB, with a high of 7,935 RMB and a low of 7,823 RMB, a decrease of 0.06%. The recent weak polyethylene futures market has suppressed the spot market.

There is an expectation of an increase on the supply side; Although downstream construction has increased, the recovery is slow, but overall support is limited. The supply-demand game is expected to have limited upward potential for polyethylene, with narrow range fluctuations being the main adjustment.

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