SunSirs: The Pressure Bearing Operation Trend of PE is relatively weak in China

According to the monitoring of the commodity market analysis system of SunSirs, the average price of LLDPE (7042) was 7,240 RMB/ton on October 1st and 7,145 RMB/ton on October 13th, a decrease of 1.31%. LDPE (2426H) had an average price of 9,596 RMB/ton on October 1st and 9,500 RMB/ton on October 13th, a decrease of 1.01%. HDPE (2426H) had an average price of 7,912 RMB/ton on October 1st and 7,825 RMB/ton on October 13th, a decrease of 1.11%.

PE showed a weak downward trend after the holiday. Last Friday, WTI crude oil plummeted and cost support loosened, suppressing the PE spot market. After the holiday, inventory has accumulated, and the recent increase in imported resources to ports still puts pressure on the supply side. After the holiday, agricultural film is in the peak season, and orders are gradually accumulating. However, demand is lower than the same period in previous years, and downstream orders mainly maintain the need to replenish inventory. The macro lacks favorable conditions, the market mentality is bearish, and businesses are actively offering discounts for shipments, resulting in a decline in the PE market.

In the fourth quarter, new PE plants were put into operation one after another. In terms of plant maintenance, the maintenance plan has been reduced compared to the previous period, and the supply pressure of PE is relatively high. There is an expectation of an increase in demand, but the demand growth is not as strong as the supply, and PE may mainly experience weak fluctuations.

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