SunSirs: China PE is main Focus on Adjustment, with Weak Upward Trend

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LLDPE (7042) was 8,246 RMB/ton on September 17, and the average price was 8,233 RMB/ton on September 24, during which the quotation fell by 0.16%.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LDPE (2426H) was 10,350 RMB/ton on September 17, and the average price was 10,400 RMB/ton on September 24, with a price increase of 0.48% during this period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of HDPE (5000S) was 8,187 RMB/ton on September 17, and the average price was 8,125 RMB/ton on September 24, during which the quotation fell by 0.76%.

Recently, the narrow adjustment of PE prices has been the main focus. The cost side support has loosened, and the boost to the PE market is limited. On the supply side, petrochemical inventory has increased. According to data statistics, as of September 23, the plastic two barrel oil storage had 810,000 tons, an increase of 35,000 tons from last week, a month on month increase of 4.52%, and a year-on-year increase of 40.87%. On the demand side, downstream agricultural film is in the peak season of demand, with continuous increase in operating rates and slow follow-up of greenhouse film orders. However, overall demand is lower than in previous years, with limited support and limited room for growth. Most traders offer discounts for shipments, and downstream transactions are easier with lower prices.

On September 24th, the Dalian Commodity Exchange PE L2501 contract opened at 7,844 RMB and closed at 7,969 RMB, up 95 RMB, with a high of 7,978 RMB and a low of 7,834 RMB, up 1.21%. Recently, the PE futures market has fluctuated weakly, providing insufficient support for the spot market.

At the end of the month, enterprises actively destocked and exerted pressure on price increases; As the holiday approaches, downstream demand is expected to increase, and it is expected that the space for PE to rise will be limited, with narrow range operation being the main focus.

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