Demand Limited, Polyethylene Narrowly Fluctuating

October 31st News

According to the commodity market analysis system, the average price of LLDPE (7042) on October 27 was 7,123 CNY/ton, and on October 31, it was 7,088 CNY/ton, a decrease of 0.49%. The average price of LDPE (2426H) on October 27 was 9,333 CNY/ton, and on October 31, it was 9,316 CNY/ton, a decrease of 0.18%. The average price of HDPE (2426H) on October 27 was 7,650 CNY/ton, and on October 30, it remained at 7,650 CNY/ton, with the price temporarily stable.

This week, polyethylene showed a weak and narrow fluctuation. During this cycle (October 24-30), the loss of polyethylene production due to plant maintenance in China was about 97,400 tons, an increase of 1,800 tons compared to the same period last week, slightly easing the supply pressure. As the end of the month approached, market transactions weakened, and downstream purchases were cautious, mainly driven by rigid demand. Producers' quotations remained firm, while traders' quotations showed slight fluctuations.

Supply pressure is expected to rise as Guangxi Petrochemical ramps up its new production capacity and restarts previously idled units. Meanwhile, agricultural film demand will enter its seasonal lull in November. Crude oil prices are anticipated to remain relatively stable, providing limited support for polyethylene costs. As a result, polyethylene prices are likely to trend weaker, though downside room remains limited.