SunSirs: China PE Market Prices Fluctuate in August

According to the monitoring of the commodity market analysis system of SunSirs, the average price of LLDPE (7042) was 7,453 RMB/ton on August 1st and 7,445 RMB/ton on August 29th, a decrease of 0.11%. LDPE (2426H) had an average price of 9,516 RMB/ton on August 1st and 9,650 RMB/ton on August 29th, an increase of 1.40%. HDPE (2426H) had an average price of 7,975 RMB/ton on August 1st and 7,982 RMB/ton on August 29th, an increase of 0.09%.

PE prices fluctuated in August, with high-pressure products showing a strong trend, while linear and low-pressure products mainly showed a consolidation trend with little change. On the supply side, the trend of high-voltage products is relatively strong, mainly due to maintenance of high-voltage equipment, tight supply, and strong quotes from merchants. As the end of the month approaches, PE spot resources will decrease and pre-sales will increase. On the demand side, it is transitioning from the off-season to the peak season, and demand has improved. The agricultural film industry has started to recover, but after the market rebound, transactions are following cautiously, limiting the upward space for prices. On the cost side, the recent high volatility of international oil prices has provided some bottom support for PE. The Chinese government is about to launch a comprehensive rectification of the petrochemical and refining industries, and domestic policies are favorable for the PE market.

Short term supply pressure has eased to some extent; September is the traditional peak season for PE, and there is a positive expectation for demand. However, downstream enterprises are currently purchasing according to demand, and their attitude is relatively cautious; Boosted by domestic policies; It is expected that PE will mainly experience strong fluctuations.

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