Price trend

According to the monitoring of the Commodity Market Analysis System of SunSirs, the domestic price of LLDPE (7042) was 8,052 RMB/ton on May 22, and the average price on May 26 was 8,014 RMB/ton, with a decrease of 0.48% during the period.

According to the monitoring of the Commodity Market Analysis System of SunSirs, the average ex factory price of LDPE (2426H) was 8,287 RMB/ton on May 22 and 8,232 RMB/ton on May 26, with a decrease of 0.66% during the period.

According to the monitoring of the Commodity Market Analysis System of SunSirs, the average ex factory price of HDPE (5000S) was 9,037 RMB/ton on May 22, and the average price on May 26 was 8,937 RMB/ton. During this period, the quotation decreased by 1.11%.

Analysis review

PE continued to decline weakly this week. On the cost side, crude oil prices had fallen, and cost support was weak. This week, petrochemical companies lowered their prices, and traders had a poor mentality, so they lowered their prices accordingly. On the supply side, there were many domestic PE plant shutdowns for maintenance, and the supply had been alleviated. In terms of demand, agricultural film was in the off-season of demand, the number of devices that was shut down for maintenance increased. Although there were factories seeking bargains to replenish inventory, the market demand boost was limited. The packaging film industry had poor orders.

Market outlook

The pressure on domestic PE supply had eased, but the PE market transactions were weak, and the focus of spot prices was constantly shifting downwards. The market currently lacked effective bullish support, and it is expected that PE may be mainly weakly downward.

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