SunSirs: Rising Plastic Product Output Boosts China PE Market

According to data from the National Bureau of Statistics, the cumulative national output of plastic products for the period of January through March 2026 reached 18.773 million tons.

The cumulative output of plastic products for January–March 2026 saw a year-on-year increase of 3.9%, with March alone recording a 2.6% rise. This indicates robust demand for plastic products, a factor likely to drive up spot prices for High-Density Polyethylene (HDPE), a key raw material. Data from polyethylene futures markets shows that the benchmark contract (Contract 2701) closed at 8,156 RMB/ton—up 100 RMB—with a trading volume of 19,531 lots and open interest increasing by 3,427 lots. This reflects strong bullish sentiment in the market, reinforcing expectations for an upward trend in HDPE futures prices.

The 3.9% and 2.6% growth rates in plastic product output signal increased downstream demand, creating a favorable environment for spot prices of Linear Low-Density Polyethylene (LLDPE). Polyethylene futures market data reveals that Contract 2701 settled at 8,067 RMB/ton—up 100 RMB—accompanied by expanded trading volume and rising open interest. This suggests that the futures market is currently dominated by bullish positions; consequently, LLDPE—as a specific grade of polyethylene—is poised to benefit from this prevailing upward price trend.

The year-on-year growth in national plastic product output implies steady demand for the raw material Low-Density Polyethylene (LDPE), suggesting that its spot prices may find support and trend upward. Within the polyethylene futures data, Contract 2701 reached a high of 8,156 RMB/ton—marking a gain of 100 RMB—while open interest rose by 3,427 lots. This demonstrates strong momentum in futures prices, indicating that LDPE futures are tracking the positive sentiment of the broader polyethylene market, with bullish momentum continuing to strengthen.

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