SunSirs: China PE Market Oscillates and Declines in September

According to the monitoring of the commodity market analysis system of SunSirs, the average price of LLDPE (7042) on September 1st was 7,428 RMB/ton, and the average price on September 28th was 7,355 RMB/ton, a decrease of 0.99%. LDPE (2426H) had an average price of 9,683 RMB/ton on September 1st and 9,596 RMB/ton on September 28th, a decrease of 0.89%. HDPE (2426H) had an average price of 7,982 RMB/ton on September 1st and 7,912 RMB/ton on September 28th, a decrease of 0.88%.

PE fluctuated and fell mainly in September, with a weak trend. According to data statistics, the estimated overall operating rate of the PE industry in September reached 80.38%, an increase from the previous month, indicating sufficient supply of PE products. In September, PE was in the traditional peak demand season, but the demand was lower than expected, and the follow-up of new orders in the greenhouse film market was slow; The demand for plastic film is generally low, with limited increase in production capacity. The demand side has limited support for PE, and the market mainly relies on rigid procurement. Merchants actively reduce inventory, but downstream customers have limited willingness to receive goods, resulting in a weak downward trend in PE prices. On the cost side, the recent peak season for traditional fuel consumption in the United States has ended, and supply side risks have not been eliminated. The situation in Russia and Ukraine is tense, and international oil prices are mainly strong in the short term. The cost side has provided support for PE.

The supply of PE is sufficient, but the demand side is not as expected, and the cost side has been supported in the near future; It is expected that PE will mainly operate with weak oscillation.

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