Weakness in Polyethylene Continues in November

November 26 news

According to the commodity market analysis system, the average price of LLDPE (7042) in China on November 1st was 7,088 CNY/ton, and on November 25th, it was 6,980 CNY/ton, a decrease of 1.53%. The average price of LDPE (2426H) in China on November 1st was 9,316 CNY/ton, and on November 25th, it was 9,016 CNY/ton, a decrease of 3.22%. The average price of HDPE (2426H) in China on November 1st was 7,650 CNY/ton, and on November 25th, it was 7,437 CNY/ton, a decrease of 2.78%.

In November, the supply and demand fundamentals of polyethylene remained unchanged, with the weak trend continuing, especially with a relatively larger price decrease for high-pressure products. On the supply side, more previously shut-down facilities have restarted, and new capacities have released production, keeping the supply pressure unchanged. In terms of demand: the e-commerce festival provided some boost to the packaging film industry, but after pre-festival stocking ended, the operating rate declined; the peak season for the agricultural film industry has ended, and downstream buyers are cautious, with a strong wait-and-see attitude, mainly engaging in rigid demand procurement, which is insufficient to provide strong support. The market lacks positive factors, and the sentiment is bearish. Petrochemical companies and traders continue to lower prices to sell. In the short term, international oil prices are expected to remain weak and volatile, with limited impact on the polyethylene market.

Supply pressure still exists, and the market is trading cautiously. Downstream factories are replenishing inventories at lower prices, but demand is entering the off-season. It is expected that polyethylene will mainly show a weak trend.