On June 30, the domestic PE spot market shipments were basically stable, with minor adjustments ranging from 50-100 yuan/ton. Among them, LLDPE and HDPE in East China remained stable, while LDPE rose slightly. Heavy oil futures rose sharply, giving a significant boost to the spot market. At the end of June, the ex-factory prices of petrochemical products remained stable across the region, with a slight increase in some areas. Sellers were in good mindset and shipments were relatively stable. Influenced by COVID-19, long-term plant demand was at normal level and the willingness to enter the market was low. Therefore, we purchased a large number of small orders and replenished them as needed.

Currently, petrochemical manufacturers are performing more equipment maintenance due to the rise in futures prices and the sharp increase in spot prices. Some units of Fujian United and Dushanzi petrochemicals are still under maintenance, market supply is reduced and prices are relatively firm. In the short term, prices are expected to continue to rise. However, negative factors still exist. We are now entering the traditional off-season for end demand, there is resistance to downstream high-priced products, and petrochemical product inventories are increasing. In the long run, there may still be up and down risks.

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