SunSirs: Limited Demand Support, Limited Rise in PE

Price trend

According to the monitoring of the Commodity Market Analysis System of SunSirs, the domestic price of LLDPE (7042) was 8,325 RMB/ton on April 3, and the average price on April 7 was 8,335 RMB/ton. During this period, the increase was 0.12%, and a decrease of 0.05% compared to March 1.

According to the monitoring of the Commodity Market Analysis System of SunSirs, the average ex factory price of LDPE (2426H) on April 3 was 8,887 RMB/ton, and the average price on April 7 was 8,837 RMB/ton. During this period, the decline was 0.56%, and a decrease of 2.56% compared to the quotation on March 1.

According to the monitoring of the Commodity Market Analysis System of SunSirs, the average ex factory price of HDPE (5000S) on April 3 was 8,666 RMB/ton, and the average price on April 7 was 8,800 RMB/ton. During this period, the quotation increased by 1.54%, and an increase of 3.31% compared to March 1.

Analysis review

This week, PE saw a narrow adjustment, most of them mainly rose. On the cost side, the sharp increase in crude oil at the beginning of the week provided some support for the PE market. Most petrochemical companies raised their prices, and traders followed suit, but overall market demand was average, suppressing the PE market. On the supply side, supply remained high, and enterprise inventory accumulated slightly. Downstream demand for mulching film was in peak season, but new orders had decreased, and demand for green house film was weak. In terms of pipes, the follow-up of new orders was slow, and downstream procurement was mainly on demand, with limited support on the demand side.

Market outlook

The PE maintenance plan in April has decreased compared to March, and there is an expectation of an increase in supply; The peak season for mulching film is gradually coming to an end, and demand will decrease. PE analysts from SunSirs predict that PE may be mainly adjusted in a narrow range.

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