Insufficient Positive Factors, Polyethylene Struggles to Rise

September 19, News

According to the commodity market analysis system, the average price of LLDPE (7042) on September 15 was 7,378 CNY/ton, and on September 18 it was 7,395 CNY/ton, an increase of 0.23% from the previous week. The average price of LDPE (2426H) on September 15 was 9,593 CNY/ton, and on September 18 it was 9,600 CNY/ton, an increase of 0.07%. The average price of HDPE (2426H) on September 15 was 7,957 CNY/ton, and on September 18 it remained at 7,957 CNY/ton, with stable quotations.

This week, polyethylene has shown limited upward momentum, with only a slight increase. The market supply is relatively sufficient. On the demand side, the agricultural film industry is in the traditional peak season, with greenhouse film production remaining at a high level. Orders for mulch films in northern China have increased, and factory operations are gradually improving; other industries are operating stably, with cautious procurement, mainly focusing on rigid demand procurement. The support from the demand side for polyethylene is limited. In terms of costs, on September 18th, international crude oil futures closed lower, as demand weakened after the end of the traditional fuel consumption peak season in the United States, and OPEC+ continued to increase production. This weakening of the cost base has put pressure on the spot prices of polyethylene.

Polyethylene supply is sufficient, and there are positive expectations on the demand side; it is expected that polyethylene will mainly operate within a narrow range, with limited potential for an increase.