SunSirs: Negative Pressure, China PE Spot Price Falls

According to the data monitoring of SunSirs, the domestic price of LLDPE (7042) was 8,204 RMB/ton on January 6, and the average price on January 12 was 8,118 RMB/ton, with a decline of 1.04% during the period, down 3.50% from December 1.

According to the data monitoring of SunSirs, the average ex-factory price of LDPE (2426H) was 9,100 RMB/ton on January 6 and 8,950 RMB/ton on January 12, with a drop of 1.65% during the period, 4.11% lower than that on December 1.

According to the data monitoring of SunSirs, the average ex-factory price of HDPE (5000S) was 8,433 RMB/ton on January 6 and 8,416 RMB/ton on January 12, with a decline of 0.20% during the period, up 0.20% from December 1.

This week, PE spot showed a weak downward trend. The downward range of HDPE is relatively small, while that of LLDPE is relatively large. The downward price of crude oil at the cost side dragged down the PE market. On the supply side, January is in the off-season of maintenance. In addition, Guangdong Petrochemical and Hainan Refining and Chemical Co., Ltd. will be put into production in January and February 2023. The PE supply will be loose, the supply pressure will continue to increase, the market will not buy enough gas, and the inventory will accumulate. In terms of terminal demand, the operating rate of downstream agricultural film, pipe, packaging film, hollow and injection molding has declined, and the enthusiasm for preparing goods before festivals is not high.

On January 12, the opening price of PE futures 2305 was 8,063, the highest price was 8,154, the lowest price was 8,060, the closing price was 8,127, the previous settlement price was 8,031, the settlement price was 8,123, up 96, the trading volume was 307,441, the position was 346,343, and the daily increase was 741. (Quotation unit: RMB/ton)

Before Chinese Lunar New Year, the enterprise planned to stop and repair not many devices. In the first quarter, PE will enter the traditional accumulation stage, and the supply of PE is sufficient; Factories have been on holiday one after another, and downstream enterprises have declined in all respects, and demand is in the off-season; The supply and demand of PE are weak, andSunSirs PE analysts predict that PE may be weak in China.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.