Recent Polyethylene Prices Have Shifted Lower in China

December 24th, according to reports

According to the commodity market analysis system, the average price of LLDPE (7042) on December 16 was 6,645 CNY/ton, and on December 23 it was 6,430 CNY/ton, a decrease of 3.24%. The average price of LDPE (2426H) on December 16 was 8,633 CNY/ton, and on December 23 it was 8,433 CNY/ton, a decrease of 2.32%. The average price of HDPE (2426H) on December 16 was 7,130 CNY/ton, and on December 23 it was 6,900 CNY/ton, a decrease of 3.23%.

Recently, the focus of polyethylene has continued to shift downward. Manufacturers' willingness to ship goods has increased, with a primary focus on active pre-sales and maintaining low inventory levels. Due to profit pressure, the operating rates of upstream producers have been adjusted. On the demand side, it is currently in the off-season; the demand for greenhouse films is gradually coming to an end, the demand for mulch films remains sluggish, and the demand for packaging films is flat. The operating rates in the pipe industry have declined, and downstream demand is weak, with new orders showing little growth and a lack of positive drivers. As the end of the month approaches, the polyethylene market continues its destocking pace, with producers and traders actively reducing prices to clear inventory. On the supply side, new production capacity continues to be released, while the demand side is in the off-season. Recently, due to geopolitical uncertainties, crude oil prices have rebounded, providing some support to the cost of polyethylene. However, the supply and demand situation is relatively weak, and it is expected that polyethylene will mainly operate in a weak state.