Pricing Trends

According to the monitoring of Todudu Product Market Analysis System, the domestic LLDPE (7042) price was RMB 8,217 per ton on October 16th, and the average price was RMB 8,180 per ton on October 20th. The stock price fell 0.45% during the period.

According to the monitoring of Rabbit Doodle Product Market Analysis System, the average price of LDPE (2426H) ex-works was RMB 9,425 per ton on October 16th, and the average price was RMB 9,307 per ton on October 20th. The stock price fell 1.25% during the period.

According to the monitoring of Rabbit Doodle Product Market Analysis System, the average price of HDPE (5000S) ex-works was RMB 8800/ton on October 16th, and the average price was RMB 8725/ton on October 20th. The stock price fell 0.85% during the period.

Analytical Review

PE prices continued to fall this week. International crude oil shook stronger, providing obvious bottom support for PE market. With enterprises shutting down production for maintenance, PE supply is expected to increase. During the peak season of agricultural film demand, market purchases are mainly tight demand, allowing for trading. Demand for packaging film is expected to improve during the e-commerce festival. To facilitate trading, businesses often sell at discounted prices and PE prices usually fall.

On October 20, PE L2401 price closed at RMB 7954 per ton, up 0.32%.

Aftermarket

On the cost side, there is some support for PE. Although it is the peak season of agricultural film, the overall demand is lower than the same period last year. In order to promote transactions, merchants tend to offer sales revenue on their own initiative. It is expected that the P/E ratio will be mainly adjusted in a narrow range.

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