On June 30, most of the domestic PE spot market delivered goods smoothly, with some small adjustments, ranging from 50-100 RMB/ ton. Among them, LLDPE and HDPE in East China remained stable, while LDPE rose slightly. The sharp rise of Liansu futures brought a significant boost to the spot market. At the end of June, the ex-factory prices of petrochemicals remained stable on a large scale, and some regions made up for a small increase. Business mentality was good, more stable shipment. Under the influence of COVID-19, the demand of downstream factories was general, and the enthusiasm of entering the market was not high. Therefore, many small orders arweree purchased and replenished as needed.
At present, the upward trend of futures has brought a significant boost to the spot, and petrochemical manufacturers have carried out more equipment maintenance. Some units such as Fujian united and Dushanzi Petrochemical are still in the state of maintenance, with reduced market supply and relatively firm prices. It is expected that there is still the possibility of price rising in the short term. However, the negative factors still exist. At present, it is in the traditional off-season of terminal demand, and the downstream has some resistance to high-priced goods, and the petrochemical inventory has accumulated. In the long run, it may still contain the rise or risk of falling.
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