June 30 News: Curve Comparison Chart
In June, the polyethylene market in China weakened across the board, with a trend characterized by narrow fluctuations in the first half of the month, a sharp decline in the middle and late parts, and a slight rebound at the end of the month. According to SpotCom data: The average price of LLDPE (7042) on June 1st was 8,276 CNY/ton, and on June 29th, it was 7,250 CNY/ton, a decrease of 12.40%. The average price of LDPE (2426H) on June 1st was 10,583 CNY/ton, and on June 29th, it was 9,050 CNY/ton, a decrease of 14.49%. The average price of HDPE (5000S) on June 1st was 10,145 CNY/ton, and on June 29th, it was 9,820 CNY/ton, a decrease of 3.2%.
China Petrochemical's maintenance facilities have resumed production in a concentrated manner, leading to an overall increase in operations. Coupled with the arrival of imported goods at ports, market inventory has continued to accumulate, resulting in a significant easing of supply for circulating goods. Traders have been continuously lowering prices to reduce inventory, which has increased the pressure on spot sales.
The market is in the traditional low-demand season, with a significant decline in downstream operations of films. All categories of downstream industries are purchasing on an as-needed basis without restocking, leading to persistently weak demand. The lack of buying support and the concentration of supply-demand imbalances have led to a sharp drop in prices.
International crude oil prices have been fluctuating and weakening, while cost support from petrochemical production continues to weaken. Manufacturers have consecutively lowered factory prices, further amplifying the downward pressure on the market as costs continue to decline. At month-end, a slight rebound in crude oil prices has driven an increase in spot prices.
The short-term supply and demand balance for polyethylene in China remains loose and is unlikely to change quickly. Downstream demand has not shown any substantial recovery, limiting the potential for a price rebound.
