SunSirs: Weak Demand, Narrow Adjustment of China PE Market

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LLDPE (7042) was 8,257 RMB/ton on January 31, and the average price on February 7 was 8,188 RMB/ton, with a price drop of 0.83% during the period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LDPE (2426H) was 9,192 RMB/ton on January 31, and the average price on February 7 was 9,245 RMB/ton, with a price increase of 0.57% during the period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of HDPE (5000S) was 8,437 RMB/ton on January 31, and the average price on February 6 was 8,412 RMB/ton, with a 0.3% decrease in quotation during this period.

This week, the LLDPE market experienced a narrow and weak decline, with LDPE prices remaining stable after a slight increase, and HDPE prices remaining stable after a slight decline. The cost side provides certain support for polyethylene. Domestic polyethylene enterprises have relatively few maintenance equipment, and the supply is still sufficient; As the Spring Festival holiday approaches, downstream factories are gradually taking a break, and the operating rate has decreased compared to the previous period. Market demand has weakened, transactions are limited, and the demand side lacks support for polyethylene. There are signs of inventory accumulation in enterprises before the holiday, and there is a weakening trend in on-site quotations. Traders mainly focus on volume and profit.

On February 7th, the opening price of the polyethylene l2405 contract on the Dalian Commodity Exchange was 8,145 RMB/ton, and the closing price was 8,220 RMB/ton, up 122 RMB/ton, with a maximum of 8,231 RMB/ton and a minimum of 8,124 RMB/ton, up 1.51%. This week, the trend of polyethylene futures was weak, bearish on the spot market.

After the Spring Festival, due to the accumulation of inventory in enterprises during the holiday period, demand remains weak, resulting in weak supply and demand for polyethylene; The frequent introduction of favorable policy news in the domestic market has boosted market confidence and provided certain support to the polyethylene market. It is expected that polyethylene will mainly adjust its operation in a narrow range after the holiday.

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