June 12 News Curve Comparison Chart
This week, polyethylene showed an overall narrow fluctuation and a clear differentiation among varieties. According to SpotCom data: the average price of LLDPE (7042) on June 5 was 8,283 CNY/ton, and the average price on June 11 was 8,313 CNY/ton, an increase of 0.36%. The average price of LDPE (2426H) on June 5 was 10,266 CNY/ton, and the average price on June 11 was 10,133 CNY/ton, a decrease of 1.30%. The average price of HDPE (5000S) on June 5 was 10,187 CNY/ton, and the average price on June 11 was 10,212 CNY/ton, an increase of 0.25%.
Crude oil prices have fallen from their highs, and profits from producing polyethylene from oil have rebounded. The strong cost support for prices has weakened to a weak floor, causing prices to lose their momentum for sustained unilateral increases.
Polyethylene plant maintenance is proceeding in parallel with restarts, resulting in limited supply increases and providing some support to prices. Among these, LDPE faces greater supply pressure due to the release of new capacity in China and the impact of imported supplies, leading to weaker prices.
Downstream overall operating rates remain low, with traditional consumption in the off-season for agricultural films and packaging films, resulting in weak orders and low acceptance of high-priced goods. The market is mainly characterized by rigid demand procurement, lacking the motivation for active inventory replenishment. The demand for fiber-grade products is relatively stable, coupled with some plant maintenance, leading to smaller fluctuations in HDPE compared to other varieties, but the sustainability of the price increases is insufficient.
The polyethylene market is likely to maintain a weak and range-bound pattern, with cost support weakening, steady recovery in supply, and weak demand during the traditional off-season, making it difficult for any unilateral trend opportunities in China.
