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SunSirs: China PE Spot Market Rose Step by Step in Late June

July 01 2020 11:19:42     SunSirs (Selena)

According to the data monitoring of SunSirs, the overall trend of China domestic PE spot market showed a steady upward trend in the second half of June (June 15-29), among which LDPE rose the most, with the increase of 3.58% in the second half of June. At present, although it is in the traditional off-season, due to the large number of maintenance of petrochemical units, the market supply is greatly reduced, which brings some support to some areas.

In late June, the prices of the three varieties in the PE spot market were mainly increased. Most petrochemical enterprises have raised their ex-factory prices to boost the market mentality. From June 15 to 17, international crude oil rose for three consecutive days, which also brought benefits to the market. At present, it is in the centralized maintenance stage of petrochemical enterprises, and the market supply has decreased, so the market price is relatively firm. However, due to the traditional off-season, the overall demand of downstream users is less, and more replenishment is required, so the market transaction atmosphere is general. Business mentality is good, on June 22, plastic futures rose in shock, which benefited the spot market, and PE saw the rise again. Petrochemical enterprises raised the ex-factory price for several consecutive days, with the increase range of 50-100 RMB/ ton. After the Dragon Boat Festival, the petrochemical inventory has accumulated, which is difficult to consume in the short term. However, due to the high level of petrochemical plant maintenance, the impact on the market is not significant, and the price is still strong.

At present, the impact of COVID-19 on China domestic market is limited, and the downstream gradually returns to work and production, the operating rate is significantly increased compared with the previous period, and the market demand shows signs of warming. And currently in the maintenance peak season, the market supply is greatly reduced, and the supply is relatively tight, which brings benefits to the market. However, with the end of the maintenance season, the domestic market supply increased significantly, and the market supply and demand situation is not optimistic. It is expected that the future market will rise first and then fall.

 

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