As of the end of August, the spot market of the three major PE varieties in South Korea was on an upward trend. Due to the shortage of commodities, the price of LDPE film materials in East China rose sharply, followed by LLDPE and HDPE in East China. Among them, high-pressure LDPE rose nearly 3% weekly. The overall market turnover is better than the downstream market.

According to the monitoring of TuoDu data, the average ex-factory price of East China LLDPE (7042) was RMB 7200.00/ton on August 24, and RMB 7400.00/ton on August 31, up 2.78% and 3.26% compared with that of August 1. The average ex-factory price of East China LDPE (2426h) was RMB 9,500.00/ton on August 24, and RMB/ton on August 31, up 2.98% and 9.26% compared with that of August 1 On August 24, the average ex-works price of HDPE(5000S) in East China was RMB 8300.00/ton, and RMB 8400.00/ton on August 31, up 1.20% and 3.70% from August 1, respectively.

At the end of August, PE spot market (East China) continued to rise, up between 100-450 yuan/ton. Shortage of high-pressure film in East China led to the price surge. The rise in international crude oil prices gave the market a boost. Petrochemical inventories were low during the period, price pressure was small, and ex-factory prices rose sharply. At present, the market supply pressure is not big, and the linear growth is obvious.

Import and export: PE imports in July 2020 was about 1,666,400 tons. Compared with June, it decreased by 8.92% to 163,300 tons. Compared with the same period last year, an increase of 19.71% to 274,400 tons. Among them, the import volume of LDPE, HDPE and LLDPE was 286,000 tons, 824,200 tons and 556,200 tons respectively. The total export volume of PE in July 2020 was 20, 100 tons. Among them, LDPE exports 7,000 tons, HDPE exports 9,600 tons, LLDPE exports 0.35 tons.

The rebound of raw material ethylene provides obvious support for PE market. The ethylene market fell in August, but rebounded slightly at the end of the month.

In the short term, the number of maintenance equipment in the PE market is expected to gradually decrease, and market supply is expected to decrease and increase. However, there is no obvious pressure on corporate inventories, and port inventories are also at a low level, supporting the market. Even plastic futures companies, cost support still exists. Agricultural film starts rose in September, and greenhouse film demand grew moderately, supporting downstream demand. China PE market is expected to rise slightly in the short term.

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