SunSirs: PE Prices Fell This Week (October 16-20)

Price trend

According to the monitoring of the Commodity Market Analysis System of SunSirs, the domestic price of LLDPE (7042) was 8,217 RMB/ton on October 16, and the average price on October 20 was 8,180 RMB/ton. During this period, the quotation decreased by 0.45%.

According to the monitoring of the Commodity Market Analysis System of SunSirs, the average ex factory price of LDPE (2426H) was 9,425 RMB/ton on October 16, and the average price on October 20 was 9,307 RMB/ton. During this period, the quotation decreased by 1.25%.

According to the monitoring of the Commodity Market Analysis System of SunSirs, the average ex factory price of HDPE (5000S) was 8,800 RMB/ton on October 16th, and the average price on October 20th was 8,725 RMB/ton. During this period, the quotation decreased by 0.85%.

Analysis review

PE prices continued to decline this week. The international crude oil fluctuated stronger, providing some bottom support for the PE market. The shutdown and maintenance of enterprises decreased, and the supply of PE was expected to increase. The demand for agricultural film was in peak season, and the market procurement was mainly based on rigid demand, and the transaction was still acceptable. The demand for packaging film during the E-commerce Festival was expected to be positive. In order to facilitate transactions, merchants often sold at reduced prices, with PE prices mainly falling.

On October 20th, PE l2401 rose 0.32% to close at 7,954 RMB/ton.

Market outlook

On the cost side, there was some support for PE, and agricultural film was in the peak demand season, but overall demand was weak compared to the same period last year. In order to facilitate transactions, merchants were often actively offering profit-cuttings for sales. It is expected that PE will be mainly adjusted in a narrow range.

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