Polyethylene Narrowly Ranges Since August

August 11th, news:

According to the commodity market analysis system, the average price of LLDPE (7042) on August 1st was 7,453 CNY/ton, and on August 11th it was 7,441 CNY/ton, a decrease of 0.16%. The average price of LDPE (2426H) on August 1st was 9,516 CNY/ton, and on August 11th it was 9,533 CNY/ton, an increase of 0.18%. The average price of HDPE (2426H) on August 1st was 7,975 CNY/ton, and on August 11th it was 7,987 CNY/ton, an increase of 0.16%.

Since August, polyethylene prices have fluctuated but mainly within a narrow range. Favorable policies in China have provided some support to the polyethylene market. On the supply side, previously shut-down facilities are gradually restarting, leading to an expected increase in supply. On the demand side, during the early part of August, downstream industries were in a low-demand season with limited new orders, and the market sentiment was cautious, providing insufficient support. However, it is expected that downstream sectors will start stocking up in anticipation of the peak season in the latter part of August, which could improve demand. Concerns over the potential negative impact of the new round of U.S. tariffs on the global economy led to a significant drop in oil prices last week, which in turn put pressure on the polyethylene market.

Supply is loose, with positive expectations on the demand side and support from policies. It is expected that polyethylene will mainly follow a narrow range fluctuation trend.