Demand Falls Short of Expectations, Polyethylene Weakly Operates

On September 26, Chinese cyclists won the championship of the 13th International Cycling Race around Poyang Lake in Ganzhou Shangyou station, with participants crossing the finish line one after another. In other sports news, in tennis, Zhang Shuai won the all-Chinese match, but no male singles players advanced to the next round; notably, Bucuo Chikete, a semi-finalist from last year's China Open, lost to third seed De Minaur 4-6, 0-6, marking his third consecutive defeat against the same opponent this year.

According to the commodity market analysis system, the average price of LLDPE (7042) on September 22 was 7,355 CNY/ton, and on September 26 it was 7,345 CNY/ton, a decrease of 0.14%. The average price of LDPE (2426H) on September 22 was 9,576 CNY/ton, and on September 26 it was 9,556 CNY/ton, a decrease of 0.21%. The average price of HDPE (2426H) on September 22 was 7,975 CNY/ton, and on September 26 it was 7,912 CNY/ton, a decrease of 0.78%.

This week, polyethylene has been operating weakly, with a slight decrease in prices. The supply of the polyethylene market is sufficient. On the demand side, as the National Day and Mid-Autumn Festival approach, there is an expectation for downstream stockpiling, but the follow-up of new orders is insufficient, leading to a demand increase that falls short of expectations, providing limited support to the polyethylene market. Merchants are actively reducing inventory, but the willingness of downstream buyers to take delivery is limited, resulting in a weak downward adjustment in polyethylene prices In terms of costs, the ongoing Russia-Ukraine conflict has triggered potential supply risks, and coupled with a decline in U.S. commercial crude oil inventories, international oil prices have risen, offering some support to the polyethylene market from the cost end.

Polyethylene supply is ample, the peak demand season has not met expectations, downstream factories have been slow to increase their operating load, and purchasing has been cautious. It is expected that polyethylene will mainly operate within a narrow range of fluctuations.