SunSirs: China PE market fluctuated weakly in November

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LLDPE (7042) was 8,228 RMB/ton on November 1st, and the average price on November 30th was 8,100 RMB/ton. During this period, the quotation fell by 1.56%.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LDPE (2426H) was 9,112 RMB/ton on November 2nd, and the average price on November 30th was 9,137 RMB/ton, with a 0.27% increase in quotation during this period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of HDPE (5000S) was 8,650 RMB/ton on November 1st, and the average price on November 30th was 8,550 RMB/ton, with a 1.16% decrease in quotation during this period.

In November, the overall performance of PE showed a weak trend. LDPE performed relatively well in resistance to decline, while LLDPE and HDPE saw a narrow decline adjustment. At the beginning of the month, companies showed a slight upward trend in their prices, but there was limited upward potential. The international oil price trend within the month was volatile and weak, suppressing the PE market. The maintenance equipment of petrochemical enterprises has decreased compared to the previous period, and the supply of PE is still sufficient. Downstream agricultural film and pipe demand has weakened, market demand has weakened, with rigid demand as the main focus and limited new orders; Traders adjust their offers and have a strong willingness to sell at a discounted price.

On November 30th, the opening price of the PE l2401 contract on the Dalian Commodity Exchange was 7,890 RMB, and the closing price was 7,968 RMB, up 86 RMB. The highest price was 7,979 RMB, and the lowest was 7,869 RMB, up 1.09%. In November, PE futures fluctuated in the first half of the month, with a significant decline in the second half and a slight increase towards the end of the month.

On November 29th, international crude oil futures prices continued to rise, supporting PE on the cost side. The operating rate of agricultural film enterprises is relatively low, downstream procurement enthusiasm is reduced, demand side support is insufficient, PE fundamentals are poor, and there is a lack of effective upward momentum. It is expected that they will mainly fluctuate weakly.

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