Pricing Trends

According to the monitoring of Todudu Product Market Analysis System, the domestic LLDPE (7042) price was RMB 8,325/mt on April 3rd, and the average price was RMB 8,335/mt on April 7th. The growth rate for the same period was 0.12%, down 0.05 percentage points from March 1st.

According to the monitoring of the soybean commodity market analysis system, April 3 LDPE (2426H) ex-works average price of 887 yuan / ton, 4887 yuan / ton,, and July average price of 8837 yuan / ton. The decline in the period was 0.56%, compared with the March 1 estimated decline of 2.56%.

According to the monitoring of Rabbit Dodo product market analysis system, the average price of HDPE (5000S) ex-works on April 3 was RMB 866/mt, and the average price on April 7 was RMB 8800/mt. The asking price rose 1.54% during the period and 3.31% from March 1st.

Analytical Review

P/E ratios were strong, narrow and mostly higher this week. On the cost side, the sharp rise in crude oil at the beginning of the week provided solid support for the PE market. Most petrochemical companies raised prices and traders followed suit, but overall market demand was average and the PE market shrank. On the supply side, supply is still high and corporate inventories are accumulating slightly. Although it is currently the peak season for downstream film demand, new orders are decreasing and greenhouse film demand is also low. On the pipeline side, new orders are slow to follow up, and downstream purchases are demand-driven, with limited demand-side support.

Aftermarket PE maintenance program is expected to decrease in April compared to March, so supply is expected to increase, and demand is expected to decrease as the peak season of ground film is gradually ending. Todudu's PE analysts expect PE is likely to adjust mainly in a narrow range.

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