Lido Limited: Polyethylene Operates Weakly

October 24, news

According to the commodity market analysis system, the average price of LLDPE (7042) on October 17 was 7,098 CNY/ton, and on October 23 it was 7,095 CNY/ton, a decrease of 0.05%. The average price of LDPE (2426H) on October 17 was 9,400 CNY/ton, and on October 23 it was 9,350 CNY/ton, a decrease of 0.53%. The average price of HDPE (2426H) on October 17 was 7,762 CNY/ton, and on October 23 it was 7,700 CNY/ton, a decrease of 0.81%.

Linear products were slightly affected by the mid-week futures increase, leading to a small rise in traders' quotes, but high-pressure and low-pressure products showed a weaker trend. On October 22, international crude oil futures saw a significant price increase, rising more than 2%. This provided cost support for polyethylene. There is still an expectation of increased supply, with China continuing to add capacity. In terms of maintenance, during this period (October 17-23), the loss of polyethylene production due to plant maintenance in China was about 95,500 tons, a decrease of 7,300 tons from the previous week. The operating rate of agricultural film has increased compared to earlier, but some factories have seen a slowdown in follow-up orders, leading to lower-than-expected demand. Producers and traders are actively reducing prices to lower inventory, resulting in a weak polyethylene market.

Supply is expected to increase; with the peak season for greenhouse films approaching, demand may improve. However, the increase in supply may outpace the growth in demand, leading to expectations that polyethylene will remain weak.