SunSirs: China PE Market Trend is Weak

According to the data monitoring of SunSirs, the domestic price of LLDPE (7042) was 8,457.14 RMB/ ton on October 23, and the average price was 8,374.29 RMB/ ton on October 27, with a decline of 0.98% during the period, 4.94% higher than that on September 1.

According to the data monitoring of SunSirs, the average ex factory price of LDPE (2426H) was 9,750 RMB/ ton on October 23 and 9,633.33 RMB/ ton on October 27, with a drop of 1.20% during the period, up 1.23% from September 1.

According to the data monitoring of SunSirs, the average ex factory price of HDPE (5000S) was 8,400 RMB/ ton on October 23 and 8,366.67 RMB/ ton on October 27, respectively, with a decline of 0.40% during the period, 1.57% lower than that on September 1.

Last week (October 23-27), the domestic polyethylene spot market was mainly weak, and the three major spot varieties were all reduced to varying degrees. LLDPE market showed a trend of rising first and then falling, while LDPE and HDPE showed a trend of falling first and then stabilizing. In the week, the factory price of polyethylene was mostly lowered by 50-400 RMB/ ton. In terms of demand, the current low pressure wire drawing and pipe are in the off-season, with few orders and weak downstream demand. In terms of supply, recently, some enterprises have reduced their output in terms of equipment maintenance. In addition, at the end of the month, the enterprises are willing to go to the warehouse at the end of the month, and mainly make more profits for shipment. However, the current packaging film market is favorable due to the "Double 11" and the demand is relatively stable. The mentality of the merchants is general, and the quotation is adjusted in a narrow range, and the overall situation is also weak.

From October 23 to 27, the volatility of Liansu futures market was small, which brought limited support to the spot market. On October 27, the opening price of polyethylene futures 2301 was 7,676, the highest price was 7,771, the lowest price was 7,676, the closing price was 7,692, the previous settlement price was 7,704, the settlement price was 7,713, down 12, the trading volume was 325,306, the position was 447,371, and the daily position was increased by 2,302. (Quotation unit: RMB/ ton)

In terms of current raw materials, international crude oil has risen, which has brought some support to the cost side. On the demand side, low pressure pipes and wire drawing materials are in the off-season, and the demand for greenhouse film is coming to an end. The downstream is cautious, and Duowei is making up on demand, so the enthusiasm has turned weak. On the supply side, the market output has decreased recently. It is expected that China PE spot market will remain weak in the short term, but the falling space is limited.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.