Polyethylene Market Continues to Show Weakness

May 29 News Curve Comparison Chart

According to Spotcom data: The average price of LLDPE (7042) on May 22 was 8,386 CNY/ton, and the average price on May 28 was 8,256 CNY/ton, a decrease of 1.55%. The average price of LDPE (2426H) on May 22 was 11,116 CNY/ton, and the average price on May 28 was 10,750 CNY/ton, a decrease of 3.30%. The average price of HDPE (5000S) on May 22 was 10,237 CNY/ton, and the average price on May 28 was 10,162 CNY/ton, a decrease of 0.73%.

With previously shut-down units resuming production, supply has become relatively abundant. The expected arrival of imported shipments is materializing, leading to a gradual buildup of port inventories. Coupled with the ample stockpiles accumulated earlier by traders, the market now boasts an oversupply of goods in circulation, intensifying competition among sellers. Social inventories have shifted from a previous slow destocking phase to a clear accumulation trend. Some traders are facing increased financial pressure, and their proactive moves to lower prices and offload inventory have directly exacerbated the downward pressure on prices.

Off-season demand has not improved, and the support from rigid demand remains weak. The traditional off-season for agricultural film continues, with downstream enterprises maintaining low operating rates. Orders in downstream industries such as packaging and injection molding are weak, and end-product companies are purchasing on an as-needed basis, buying as they use, leading to an overall slowdown in procurement pace. The market lacks support from bulk transactions.

Crude oil support is weakening. International crude oil prices have experienced wide-ranging fluctuations and are falling, as supply concerns triggered by geopolitical conflicts have eased, reducing the strength of cost-based support.

The loose supply situation is unlikely to change, and the agricultural film off-season will continue. Downstream demand for packaging and injection molding is expected to see little significant improvement, with weak support from essential demand. In the short term, the polyethylene market in China is expected to maintain a weak and volatile trend.