Polyethylene Under Pressure, Trend Weak

October 13, news

According to the commodity market analysis system, the average price of LLDPE (7042) on October 1st was 7240 CNY/ton, and on October 13th it was 7145 CNY/ton, a decrease of 1.31%.The average price of LDPE (2426H) on October 1st in China was 9596 CNY/ton, and on October 13th it was 9500 CNY/ton, a decrease of 1.01%.The average price of HDPE (2426H) on October 1st in China was 7912 CNY/ton, and on October 13th it was 7825 CNY/ton, a decrease of 1.11%.

After the holiday period, polyethylene prices weakened and trended downward, reflecting a generally bearish market sentiment. Last Friday, WTI crude oil experienced a sharp drop, easing cost-side support and putting downward pressure on spot polyethylene trading. Meanwhile, post-holiday inventory levels have begun to build, while recent increases in imported supplies arriving at ports continue to weigh heavily on the supply side. Although agricultural film demand is entering its peak season, with orders gradually picking up, overall demand remains weaker compared to the same period last year. Downstream buyers are primarily focused on fulfilling essential restocking needs rather than boosting purchases. On the macro front, there’s a noticeable lack of positive catalysts, further fueling a cautious market outlook. As a result, traders are actively offering discounts to encourage sales, driving the continued decline in polyethylene prices.

In the fourth quarter, new polyethylene facilities will be commissioning successively in China, and in terms of plant maintenance, the number of planned overhauls has decreased compared to earlier periods, leading to a significant supply pressure for polyethylene. On the demand side, there is an expectation of growth, but the increase in demand will not match the supply, so it is expected that the trend for polyethylene will mainly be a weak fluctuation.