Last week, the PE market saw overall narrow fluctuations with significant divergence across different grades. According to SunSirs spot market data, the average price of LLDPE (7042) rose 0.36%, moving from 8,283 RMB/ton on June 5 to 8,313 RMB/ton on June 11. LDPE (2426H) fell 1.30%, dropping from 10,266 RMB/ton to 10,133 RMB/ton. HDPE (5000S) rose 0.25%, increasing from 10,187 RMB/ton to 10,212 RMB/ton.

As crude oil prices retreated from their highs, profit margins for oil-based PE recovered; consequently, the strong cost support shifted to a weaker floor, causing prices to lose the momentum for a sustained upward trend.

With PE production units undergoing maintenance and restarting simultaneously, the net increase in supply remained limited, providing some price support. However, LDPE faced significant supply pressure due to the release of new domestic capacity and an influx of imports, leading to weaker prices.

Overall downstream operating rates remained low. As it is the traditional off-season for products like agricultural film and packaging film, orders were sluggish and acceptance of high-priced material was poor; market activity was driven primarily by essential demand, with little incentive for proactive restocking. Demand for yarn-grade material remained relatively stable, and combined with unit maintenance, HDPE prices fluctuated less than other grades, though there was insufficient momentum for a sustained rise.

The PE market is likely to remain range-bound with a weak bias. With diminishing cost support, steadily recovering supply, and weak demand during the traditional off-season, significant unidirectional price trends are unlikely to emerge.

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