Positive Factors Boost Polyethylene to Operate Slightly Stronger

August 18th, News

According to the commodity market analysis system, the average price of LLDPE (7042) on August 11 was 7,441 CNY/ton, and on August 18 it was 7,448 CNY/ton, an increase of 0.09%. The average price of LDPE (2426H) on August 11 was 9,533 CNY/ton, and on August 18 it was 9,633 CNY/ton, an increase of 1.05%. The average price of HDPE (2426H) on August 11 was 7,987 CNY/ton, and on August 18 it was 8,012 CNY/ton, an increase of 0.31%.

Recently, polyethylene has mainly been operating in a narrow and slightly strong range. On the supply side, plant maintenance has increased, with shutdown and maintenance plans for facilities at Fushun Petrochemical, Wanhua Chemical, and Lianyungang Petrochemical, which has somewhat alleviated supply pressure. On the demand side, downstream factories are showing more interest in restocking, and the "Golden September, Silver October" peak season is gradually approaching, leading to a positive outlook for demand. In terms of costs, the geopolitical situation is expected to further ease, and the International Energy Agency has lowered its global demand growth forecast, leading to a decline in international oil prices and weaker cost support. Favorable policies in China provide some support for the polyethylene market.

Positive factors are expected to drive a generally strong, albeit narrow, trend for polyethylene.