SunSirs: China PE Market Trend Tends to be Strong in November

https://www.chemnet.com   Nov 28,2024 SunSirs

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LLDPE (7042) was 8,475 RMB/ton on November 1st, and the average price was 8,721 RMB/ton on November 27th, with a price increase of 2.91% during this period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LDPE (2426H) was 10,816 RMB/ton on November 1st, and the average price was 10,816 RMB/ton on November 27th, with the quotation remaining unchanged during this period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of HDPE (2426H) was 8,475 RMB/ton on November 1st, and the average price was 8,525 RMB/ton on November 27th, with a price increase of 0.59% during this period.

The overall trend of PE is relatively strong, with linear products continuing to rise. High voltage products showed a significant decline at the beginning of the month, and prices continued to rise thereafter, while low-voltage products saw a slight increase. Factors contributing to the decline in high-pressure products at the beginning of the month: Due to the conversion of some EVA units to LDPE, there is an expected increase in LDPE supply, resulting in a decrease in prices. 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 raised their prices, and traders have followed suit with offers. The demand for agricultural film in November has turned weak from the peak season, while downstream demand for essential replenishment remains limited, resulting in limited new orders and average market transactions. In the second half of the month, crude oil fluctuated strongly and rose, while the cost side boosted the PE market. Recently, prices have fallen, and cost support has weakened. Positive domestic policies have been released, and the market sentiment is good, providing support for the PE market.

On November 27th, the Dalian Commodity Exchange PE L2501 contract opened at 8,415 RMB and closed at 8,401 RMB, up 8 RMB, with a high of 8,434 RMB and a low of 8,383 RMB, up 0.10%. The trend of PE futures in November fluctuated strongly, providing some support for the spot market.

The maintenance of the PE plant will be concentrated in November, and with the addition of new production capacity and the restart of parking facilities in December, the supply side is expected to increase; The demand for agricultural film is gradually coming to an end in December, and the downstream operating rate is expected to decrease; In addition, downstream suppliers are more resistant to high priced goods, and it is expected that PE will mainly fluctuate weakly in December.

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