SunSirs: China PE Market has a Strong Trend and Limited Short-term Upward Space

https://www.chemnet.com   Nov 22,2024 SunSirs

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LLDPE (7042) was 8,636 RMB/ton on November 14th, and the average price was 8,700 RMB/ton on November 21st, with a price increase of 0.73% during this period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LDPE (2426H) was 10,733 RMB/ton on November 14th, and the average price was 10,816 RMB/ton on November 21st, with a price increase of 0.78% during this period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of HDPE (2426H) was 8,500 RMB/ton on November 14th, and the average price was 8,500 RMB/ton on November 21st, during which the quotation was temporarily stable.

Recently, the trend of PE has been strong, with LLDPE and LDPE showing significant increases, and HDPE prices remaining firm. On the supply side, the maintenance of enterprise equipment is relatively concentrated, and the supply of goods is tight, which is favorable for the PE market. Petrochemical companies have slightly increased their quotations, and traders have followed suit with offers. The demand for agricultural film in November has weakened from the peak season, with some factories operating at a lower rate compared to the previous period. Downstream demand for essential supplies has been maintained, with limited new orders and average market transactions. The favorable policies have boosted the plastic market, and the market mentality is relatively strong.

On November 21st, the PE L2501 contract on the Dalian Commodity Exchange opened at 8,475 RMB and closed at 8,445 RMB, up 38 RMB, with a maximum of 8,502 RMB and a minimum of 8,417 RMB, up 0.45%. The recent strong trend of PE futures has boosted the spot market.

The maintenance of the equipment will be concentrated in November, and new production capacity will be put into operation in December, with an expected increase in the supply side; The demand for greenhouse film is gradually coming to an end; Downstream consumers are more resistant to high priced goods sources, limiting the upward potential. It is expected that the upward potential of PE will be limited in the short term.

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