Weak Supply and Demand Fundamentals Lead to Weak Polyethylene Market Performance

November 11, News

According to the commodity market analysis system, the average price of LLDPE (7042) on November 4 was 7,011 CNY/ton, and on November 10 it was 6,966 CNY/ton, a decrease of 0.64%. The average price of LDPE (2426H) on November 4 was 9,316 CNY/ton, and on November 10 it was 9,200 CNY/ton, a decrease of 1.25%. The average price of HDPE (2426H) on November 4 was 7,620 CNY/ton, and on November 10 it was 7,550 CNY/ton, a decrease of 0.92%.

Recently, polyethylene has still mainly been operating weakly, with a relatively larger price decrease for high-pressure products. The supply has increased, with more facilities restarting recently and new production capacities gradually releasing output. Downstream purchasing intentions are limited, mostly maintaining rigid demand procurement, leading to a bearish market sentiment. The weak plastics futures market is putting pressure on the spot market. Lacking positive factors, petrochemical companies and traders in China continue to lower prices to sell off inventory.

With new production capacity coming online, previously shut-down units are gradually resuming operations, while the number of units undergoing maintenance has declined, ensuring ample supply. However, by late November, startup activity among greenhouse film producers is expected to slow down, though demand for packaging films remains modest overall. As a result, the underlying supply-and-demand dynamics remain weak, suggesting that polyethylene prices will likely stay under pressure—but downside risks appear limited.