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SunSirs: China PE Futures and Spot Market Rose strongly in early July

July 15 2020 08:38:28     SunSirs (Selena)

According to the data monitoring of SunSirs, in the first ten days of July (July 1-9), the overall trend of domestic PE spot market showed a continuous upward trend, among which LDPE rose the most significantly, with an increase of 6.52% during the period. Although it is in the off-season of terminal demand, due to the centralized maintenance of petrochemical units, the market supply pressure is not big, which has certain support for some regions.

In July, the prices of the three major varieties in the PE spot market continued the upward trend in June and continued to pull up sharply. At present, the centralized maintenance of petrochemical enterprises is not over, the daily output of petrochemical enterprises remains at a low level, and the spot supply pressure is not great. Petrochemical enterprises have continuously raised the ex factory price. Due to the low price of wire drawing goods in the early stage, the current price increase of wire drawing materials is the most obvious, with the increase of 250-550 RMB/ ton. The rising cost has brought a certain boost to the market. The attitude of shippers is better, and they mainly follow the trend.

Continuous high opening of PE futures drives up the spot market, but the lack of terminal demand has curbed the rise

At present, some units of the enterprise are still in the state of shutdown and maintenance, and the impact of social and public health events on the domestic market is limited. The downstream gradually returns to work and production, the operating rate is significantly increased compared with the previous period, and the downstream demand gradually rises in the later stage. At present, the ex-factory price of petrochemicals is high, but the futures market is no longer rising, and the international oil price is falling sharply. To a certain extent, it depresses the market confidence and aggravates the wait-and-see mentality of the downstream. It is expected that the PE market will usher in a correction in the short term, and there is still a long-term rise expectation.

 

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