SunSirs: The Pressure on China PE Supply Side Is not Decreasing, and the Short-term Market Remains Weak

According to the monitoring of the commodity market analysis system of SunSirs, the average price of LLDPE (7042) was 6,708 RMB/ton on February 24th and 6,605 RMB/ton on February 27th, a decrease of 1.54%. LDPE (2426H) had an average price of 8,650 RMB/ton on February 24th and 8,683 RMB/ton on February 27th, an increase of 0.39%. The average price of HDPE (5000S) on February 24th was 7,345 RMB/ton, and on February 27th it was 7,312 RMB/ton, a decrease of 0.44%.

This cycle, PE showed an overall trend of first rising and then falling, with a fluctuating downward trend. On the first day after the holiday, prices rose, mainly supported by crude oil, and sentiment rebounded after the holiday. Afterwards, the price fell back and there was a lack of momentum to keep up with the rise.

High inventory on the supply side: During the Spring Festival, petrochemical companies accumulated inventory, resulting in significant pressure on the supply side. In terms of maintenance: there is no new scale of maintenance, and the main focus is on continuing the shutdown of the early parking device; Multiple sets of pre maintenance equipment have been restarted to further enhance supply.

Slow resumption of work on the demand side: downstream agricultural film, packaging, pipe materials, etc. have not yet fully resumed work. The market is mainly driven by rigid demand transactions, and traders and downstream are cautious and watching.

Cost and macro: Crude oil first rose and then fell, reducing cost support. Macro sentiment tends to be cautious, with no strong policy stimulus.

Due to the dual pressure of inventory and demand, it is expected that PE will experience weak fluctuations in the short term.

SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.