Pricing Trends

According to the monitoring of Todudu Product Market Analysis System, the domestic LLDPE (7042) price was RMB 8,275 per ton on April 1, and the average price was RMB 8,350 per ton on April 27, up 0.90% year-on-year.

According to the monitoring of Todudoo Product Market Analysis System, the average ex-works price of LDPE (2426H) was RMB 8,887 per ton on April 1, and RMB 8,725 per ton on April 27, a year-on-year decrease of 1.83%.

According to the Rabbit Dodo product market analysis system monitoring, April 1 HDPE (5000S) ex-works average price of 8633 yuan / ton, April 27 average price of 9090 yuan / ton. The asking price rose 5.29% in the same period.

Analytical Review

PE market trend in April was mixed, narrow adjustment has become the norm, HDPE prices rose sharply. Cost, the first half of the month, crude oil rose sharply after the high level of shock, for the PE market to provide solid support. Most petrochemical companies have raised prices, and traders have followed suit, but there is little room for price increases. On the supply side, offers rose sharply due to lack of supply and frequent maintenance of HDPE equipment. Downstream demand was generally lower than expected, limiting upside potential. In terms of downstream demand and packaging films, on-demand purchases were predominant. The peak season for ground film is gradually ending, and the demand for greenhouse film is average, with a lack of orders to follow up.

In the second half of the year, crude oil prices fluctuated down, with insufficient cost support. Subsequently, maintenance equipment will resume operation, PE supply is expected to increase, agricultural film supply pressure will still enter the off-season. Market demand has weakened. Other downstream industry demand is not expected to change significantly.

Aftermarket

Todudu PE analysts expect the PER could see a major correction.

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