September Polyethylene Slides Sharply Downward

September 29, News

According to the commodity market analysis system, the average price of LLDPE (7042) on September 1st was 7,428 CNY/ton, and the average price on September 28th was 7,355 CNY/ton, a decrease of 0.99%. The average price of LDPE (2426H) on September 1st was 9,683 CNY/ton, and the average price on September 28th was 9,596 CNY/ton, a decrease of 0.89%. The average price of HDPE (2426H) on September 1st was 7,982 CNY/ton, and the average price on September 28th was 7,912 CNY/ton, a decrease of 0.88%.

In September, polyethylene mainly fluctuated and declined, showing a weak trend. According to statistics, the overall operating rate of the polyethylene industry in September was estimated at 80.38%, rising month-on-month, indicating an ample supply of polyethylene products. Although September is traditionally a peak season for polyethylene demand, the actual demand fell short of expectations, with new orders in the greenhouse film market following slowly; the demand for ground films was moderate, and the increase in production was limited, meaning that demand-side support for polyethylene was minimal, with the market mainly characterized by rigid demand procurement. Traders were actively reducing their inventories, but downstream buyers' willingness to take delivery was limited, leading to a soft decline in polyethylene prices. On the cost side, with the end of the traditional fuel consumption peak season in the United States, the risks on the supply side have not been eliminated, and tensions remain high between Russia and Ukraine, making international oil prices strong in the short term, providing some support to the cost side of polyethylene.

Polyethylene supply is ample, while demand has fallen short of expectations, providing some recent support on the cost side. Overall, polyethylene prices are expected to remain volatile, trending slightly weaker.