Price trend

According to data monitoring by toodudu, the domestic price of LLDPE (7042) on March 1 was 8,340 RMB/ton, and the average price on March 30 was 8,275 RMB/ton. During the period, the decline was 0.77%, and down 2.03% compared to February 1.

According to data monitoring by toodudu, the average ex-factory price of LDPE (2426H) on March 1 was 9,070 RMB/ton, and the average price on March 30 was 8,887 RMB/ton. During the period, the decline was 2.01%, and down 3.57% compared to the quotation on February 1.

According to data monitoring by toodudu, the average ex-factory price of HDPE (5000S) on March 1 was 8,533 RMB/ton, and the average price on March 30 was 8,633 RMB/ton. During the period, the increase was 1.17%,and up 0.78% compared to February 1.

Analysis review

PE was mixed in March. LLDPE and LDPE adjusted narrowly in the first half of the month, showing a downward trend in the second half. Near the end of the month, prices showed a slight upward trend, while HDPE prices were mainly strong after a slight increase at the beginning of the month. At the beginning of the month, on the cost side, international crude oil futures rose, supporting the PE market. March was the peak season for agricultural film demand, and the market demand was expected to be positive, with the price being raised. In the middle of the month, due to the international banking crisis, the macro market was heavily pessimistic, and the PE market was somewhat dragged down. Near the end of the month, enterprises were overhauling, and there was an upward trend in spot prices. In addition, the crude oil market rebounded, boosting the price of PE.

Market outlook

The crude oil market recovered, and the cost side may have some support. From March to April, there will be an increase in the maintenance of devices, but the new capacity will be gradually released, and the PE supply pressure remains high. Downstream mulching film is in the peak season, with weak demand for green house film. In terms of pipe materials, factory orders have been slow to follow up, and the enthusiasm for replenishment is not high, mainly on demand. PE analysts from toodudu predict that PE may be mainly operated in a volatile and weaker manner.

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