Bearish Factors Suppress Weak Operation of Polyethylene in China

December 16 news

According to the commodity market analysis system, the average price of LLDPE (7042) on December 9 was 6,781 CNY/ton, and the average price on December 15 was 6,670 CNY/ton, a decrease of 1.65%. The average price of LDPE (2426H) on December 9 was 8,800 CNY/ton, and the average price on December 15 was 8,633 CNY/ton, a decrease of 1.89%. The average price of HDPE (2426H) on December 9 was 7,312 CNY/ton, and the average price on December 15 was 7,162 CNY/ton, a decrease of 2.05%.

Recently, polyethylene prices have remained weak. While manufacturers are increasingly willing to ship their products, downstream demand remains weak. To actively reduce inventory levels, the market is primarily offering discounts and lowering prices continuously. International crude oil prices have fallen as markets worry about the prolonged risk of oversupply, leaving insufficient cost support. On the supply side, ample availability persists—new production facilities have already been commissioned and are steadily ramping up output, leading to a steady increase in overall production. Meanwhile, demand is in the off-season, with limited growth in new orders; most procurement is driven by rigid demand, and buyers are not particularly active in taking delivery. As a result, the overall operating rate in downstream industries has slightly declined. Demand for greenhouse films has entered the off-season, and trading activity in the packaging film sector remains subdued. There is insufficient stimulus for end-consumer spending. Recently, futures prices have been trending downward, weighed down by multiple negative factors. We expect polyethylene prices to remain weak in the near term.