October Polyethylene Market Performance in China is Poor

October 30, news

According to the commodity market analysis system, the average price of LLDPE (7042) on October 1st was 7,240 CNY/ton, and on October 30th, it was 7,106 CNY/ton, a decrease of 1.84%. The average price of LDPE (2426H) on October 1st was 9,596 CNY/ton, and on October 30th, it was 9,350 CNY/ton, a decrease of 2.57%. The average price of HDPE (2426H) on October 1st was 7,912 CNY/ton, and on October 30th, it was 7,650 CNY/ton, a decrease of 3.32%.

In October, the polyethylene market performed poorly. In the latter part of the month, it was boosted by macroeconomic benefits, leading to a slight rebound in linear products. After the National Day holiday, polyethylene inventories accumulated, and with the increase in imported resources arriving at ports, as well as new production capacities in China about to be commissioned, the supply-side pressure was significant. In October, agricultural film demand was in its peak season, and the operating rate increased compared to the previous period. However, some factories saw a slowdown in follow-up orders, resulting in weaker demand compared to the same period in previous years. Downstream orders mainly focused on restocking based on essential needs, providing limited support to the spot market for polyethylene. Producers and traders actively reduced prices to lower inventory, leading to a weakening of the polyethylene market.

The fundamentals of polyethylene supply and demand remain weak. It is expected that polyethylene will mainly operate in a weak market, but the downward space is limited.