SunSirs: China PE Market is Mixed in Ups and Downs

According to the monitoring of the Commodity Market Analysis System of SunSirs, the domestic price of LLDPE (7042) was 8,507 RMB/ton on September 14, and the average price on September 21 was 8,545 RMB/ton. During this period, the quotation increased by 0.45%.

According to the monitoring of the Commodity Market Analysis System of SunSirs, the average ex factory price of LDPE (2426H) was 9,625 RMB/ton on September 14, and 9,662 RMB/ton on September 21. During this period, the quotation increased by 0.39%.

According to the monitoring of the Commodity Market Analysis System of SunSirs, the average ex factory price of HDPE (5000S) was 9,287 RMB/ton on September 14, and the average price on September 21 was 9,187 RMB/ton. During this period, the quotation decreased by 1.08%.

In the previous cycle, the price of PE fluctuated, with LLDPE and LDPE showing an overall upward trend. LLDPE first rose and then fell, while LDPE mainly rose and then remained stable. The quotation of HDPE wire drawing grade products declined. At the beginning of the week, the cost side crude oil price was relatively strong, which had a supportive effect on PE prices. Afterwards, crude oil prices fell slightly, and the supportive effect weakened. The early maintenance devices are gradually restarting, and the supply of PE is expected to increase. As the Double Festival approaches, downstream factories are expected to stock up and demand is expected to increase. The demand for greenhouse film has entered the peak season, and orders are gradually increasing. The operating rates of the agricultural film industry, PE pipe industry, and packaging film industry have all increased. But there is resistance from downstream towards high prices, and traders are offering to ship at a discount.

The cost of crude oil and coal is supported, and PE is boosted. The parking and maintenance devices of enterprises have been gradually restarted, and the supply of PE has increased. Peak season demand has boosted, with downstream stock expectations. In terms of packaging film, demand is expected to increase due to the boost from the Mid Autumn Festival and the E-commerce Festival. PE supply and demand have both increased, and crude oil futures are expected to weaken and decline towards the weekend. It is expected that PE may fluctuate and adjust mainly.

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