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SunSirs: Tight Supply, PE Futures & Spot Rose sharply in China
November 26 2020 10:58:13SunSirs(Selena)

According to the data monitoring of SunSirs, the average ex-factory price of LLDPE (7042) in East China was 7,750.00 RMB/ ton on November 22 and 8,050.00 RMB/ ton on November 23, with a one-day increase of 3.87% and an increase of 7.10% compared with November 1 at the beginning of the month. The average exfactory price of LDPE (2426H) in East China was 11,300.00 RMB/ ton on November 22 and 11,600.00 RMB/ ton on November 23, with a one-day increase of 2.65% and an increase of 11.14% compared with November 1 at the beginning of the month. The average ex-factory price of HDPE (5000S) in East China was 8,433.33 RMB/ ton on November 22 and 8,533.33 RMB/ ton on November 23, with daily increase of 1.19% and a rise of 2.40% compared with November 1 at the beginning of the month.

In November, the three varieties of PE spot market and the futures market showed an upward trend as a whole. Among them, the three varieties in the spot market rose periodically within the month, while the futures market was mainly weak in the first ten days of the month, and the rising route began on November 11. Among them, high-pressure varieties led the rise, followed by linear varieties, while low-pressure varieties were driven by the other two varieties to follow up slightly. One of the reasons for this rise is that the supply of high-voltage market is affected by the shutdown of equipment of Maoming Petrochemical and other enterprises, which leads to the decrease of supply, the tight supply of goods in the market and the sharp increase of prices. Secondly, the futures market continued to rise sharply, which obviously supported the trading atmosphere of the spot market. International crude oil and ethylene prices continue to rise in recent years, bringing certain benefits to the market. Petrochemical factory prices mainly rise, business mentality is good, and market prices are higher.

In terms of upstream ethylene market, Asian ethylene market prices rose sharply, demand improved, atmosphere was active, and the market rose sharply.

In terms of demand, the operating rate of agricultural film has decreased, the demand for greenhouse film is reduced, and the plastic film is in the off-season, which has no good support for the price. However, the continuous rise in the futures market supported the bullish confidence of the industry. The crude oil and ethylene markets rose, and the cost support was strengthened, which was beneficial to the market mentality. China polyethylene market is expected to rise in the short term.


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