Limited Demand, China PE Market Ups and Downs

September 1, 2022

Latest company news about Limited Demand, China PE Market Ups and Downs

According to the data monitoring of SunSirs, the domestic price of LLDPE (7042) was 7,840 RMB/ ton on August 21, and the average price was 7,875.71 RMB/ ton on August 29. The increase rate in the week was 0.46%, down 9.30% compared with July 1.

According to the data monitoring of SunSirs, the average ex factory price of LDPE (2426H) was 9,783.33 RMB/ ton on August 21 and 9,516.67 RMB/ ton on August 29, with a decrease of 2.73% in the week and 12.96% compared with July 1.

According to the data monitoring of SunSirs, the average ex factory price of HDPE (5000S) was 8,516.67 RMB/ ton on August 21, and 8,450 RMB/ ton on August 29, with a decrease of 0.78% in the week and 10.27% compared with July 1.

Last week, the overall trend of the domestic polyethylene market was weak. The three spot varieties rose and fell differently, with a fluctuation range of 50-350 RMB/ ton. Among them, LLDPE showed an upward trend, while LDPE and HDPE prices fell. During the week, the international crude oil market fluctuated and rose, which brought certain support to the market in terms of cost. However, the market supply has increased, and the start-up of Shanghai Petrochemical and other units has brought certain negative effects. In terms of demand, many places are affected by the high temperature, the increase of downstream orders is limited, the market trading atmosphere is weak, and the mentality of merchants is negative. Only a few brands have increased, and most of the others have decreased.

On August 29, the opening price of PE futures 2301 was 7,735, the highest price was 7,786, the lowest price was 7,666, the closing price was 7,690, the previous settlement price was 7,677, the settlement price was 7,725, up 13%, the trading volume was 387,642, the position was 318,297, and the daily increase was 2,584. (quotation unit: RMB/ ton)

Although the current international crude oil market is still rising, the support brought by the cost is relatively limited. The overall supply of polyethylene market has increased, but the follow-up of downstream demand is limited, and the market trading atmosphere is weak, still dominated by weakness. It is expected that the PE spot market may still decline slightly in China in the short term.

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