SunSirs: Poor PE Matket in China in October

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 7,106 RMB/ton on October 30th, a decrease of 1.84%. LDPE (2426H) had an average price of 9,596 RMB/ton on October 1st and 9,350 RMB/ton on October 30th, a decrease of 2.57%. The average price of HDPE (2426H) on October 1st was 7,912 RMB/ton, and on October 30th it was 7,650 RMB/ton, a decrease of 3.32%.

The performance of PE in October was not good, and in the latter half of the year, linear products rebounded slightly due to macroeconomic favorable factors. After the National Day holiday, PE inventory has accumulated, coupled with an increase in imported resources arriving at the port and the imminent production of new domestic capacity, resulting in significant pressure on the supply side. In October, agricultural film was in the peak demand season, with an increase in production rate compared to the previous period. However, some factories slowed down their follow-up orders in the later stage, resulting in lower demand compared to the same period in previous years. Downstream orders mainly maintained the need to replenish inventory, which limited support for the PE spot market. Producers and traders are actively lowering prices to reduce inventory, leading to a weakening of the PE market.

The supply and demand fundamentals of PE are still weak, and it is expected that PE will mainly operate weakly, but the downward space is limited.

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