SunSirs: Recent Fluctuations in China PE Prices

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LLDPE (7042) was 8,783 RMB/ton on December 6th, and the average price was 8,818 RMB/ton on December 16th, with a price increase of 0.40% during this period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of LDPE (2426H) was 10,816 RMB/ton on December 6th, and the average price was 10,650 RMB/ton on December 16th, with a price drop of 1.54% during this period.

According to the monitoring of the commodity market analysis system of SunSirs, the domestic price of HDPE (2426H) was 8,562 RMB/ton on December 6th, and the average price was 8,562 RMB/ton on December 16th, with the quotation remaining unchanged during this period.

Recently, the trend of PE has been fluctuating, with linear products showing a strong trend and high-pressure products experiencing a relatively large decline. Due to an increase in spot resources on the supply side, the price of high-voltage products has declined. Linear products are mainly affected by tight supply, resulting in a slight increase in prices. According to statistics, the maintenance loss of domestic PE plants during the period of (12.6-12.12) was about 93,200 tons, a decrease of 5,200 tons compared to last week. The production of the new device has been delayed. The overall operating rate of downstream PE has declined compared to the previous period, with the packaging film industry in a low season of demand, greenhouse film demand coming to an end, and plastic film slowly increasing, resulting in limited demand support. International oil prices have fluctuated and risen, with some support on the cost side. Boosted by favorable domestic policies.

On December 16th, the Dalian Commodity Exchange PE L2501 contract opened at 8,350 RMB and closed at 8,430 RMB, up 93 RMB, with a high of 8,439 RMB and a low of 8,350 RMB, up 1.12%.

New production capacity is gradually being deployed; The expected reduction in maintenance losses and increase in supply side expectations; The demand for greenhouse film is coming to an end, and the demand may weaken. The main focus is on purchasing for essential needs; The support of crude oil on the cost side is expected to weaken, and it is expected that PE will mainly fluctuate weakly.

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