SunSirs: Analysis of PE Price Changes in China China Yangzi Petrochemical

On December 10th, the PE unit of China China Yangzi Petrochemical showed that the 200,000 ton full density unit produced 7042, the 120,000 ton HDPE A line produced 5720D, the 80,000 ton HDPE B line produced 5305T, and the 70,000 ton HDPE C line produced 5101. Yangtze Petrochemical (East China Branch) LLDPE 7042 quoted 7,100 RMB/ton, with the quotation temporarily stable; HDPE 5000S reported a price of 7,150 RMB/ton, a decrease of 50 RMB/ton.

The spot price of HDPE 5000S at China Yangzi Petrochemical fell by 50 RMB/ton to 7,150 RMB/ton, indicating an increase in supply or weak demand, which is bearish for spot prices. The closing price of the main polyethylene futures contract 2605 was 6,599 RMB/ton, a decrease of 57 RMB/ton, and the position increased by 50,119 lots, indicating an increase in bearish sentiment in the market, which may further suppress futures prices.

The spot price of LLDPE 7042 from China Yangzi Petrochemical is temporarily stable at 7,100 RMB/ton, with a neutral signal. However, the overall decline in polyethylene futures (such as the 2605 contract falling by 57 RMB/ton) reflects a weakened market expectation for demand for polyethylene commodities, which may exert slight pressure on LLDPE futures prices.

The article did not directly mention the spot price of LDPE, but as a polyethylene commodity, it was affected by the decline in HDPE prices of China Yangzi Petrochemical and the overall PE market. The main polyethylene futures contract 2605 fell 57 RMB/ton, with a significant increase in holdings, indicating the spread of bearish sentiment in the market, which may indirectly drag down LDPE futures prices.

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