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Limited Benefits, China PE Market Rose and Fell after the National Day Holidays

  41
 June 2, 2024

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According to Todudu data monitoring, the domestic LLDPE (7042) price was RMB 8,368.57 per ton on October 7, and the average price was RMB 8,528.57 per ton on October 17, up 1.91% over the same period, and up 6.87% from September 1st.

According to the monitoring of the data of TuoDu, the average price of LDPE (2426H) ex-factory on October 7 was RMB 9,980/mt, RMB 10,050.00/mt, up 0.70% compared with October 17, up 5.60% over the same period . August 1

According to Tudou data monitoring, the average price of HDPE (5000S) ex-factory on October 7 was RMB 8416.67 per ton, and on October 17 was RMB 853.33 per ton, up 1.5% over the same period. The same period rose 1.39%, up 0.39% from August 1st.

From October 7 to 17, the domestic PE spot market overall upward trend, the three major spot varieties are upward trend. First rise and then fall, the rate of increase is greater than the rate of decline. During the holiday period, international crude oil prices continued to rise, bringing obvious cost benefits to the market. After the holiday, PE market was pulled up. In addition, due to post-holiday downstream inventory and replenishment demand, petrochemical companies were in a firm mindset, leading to higher ex-factory prices. However, international crude oil prices stopped rising and falling after the holiday, and market sentiment was poor. Price hikes limited downstream acceptance and hindered price increases. Compared with the previous period, the enthusiasm to enter the market weakened and the market trading atmosphere also weakened. PE prices fell and most shipments kept margins.

From October 7 to 17, the plastics futures market rose and then fell. The decline was greater than the rise, bringing bad news to the sector. On October 17, PE futures 2301 opened at 7896, the highest price of 7926, the lowest price of 7791, closing price of 7809, the former settlement price of 7898, the settlement price of 7855, the turnover of 421,259 lots, the turnover of 421,870 lots, the turnover of 421,870 lots. (Quotation unit: yuan / ton)

In terms of raw materials, the current international crude oil prices are weak, bringing negative cost news. On the demand side, the end of post-holiday restocking, the downstream's ability to withstand price increases is limited, and the enthusiasm to enter the market has declined. On the supply side, the current market supply is mainly increasing and the market lacks advantages. It is expected that China's private equity spot market will mainly show a downward trend in the short term.

Please feel free to contact toodududu (tdd-global@toodudu.com) with any questions.

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