August 21 News: Curve Comparison Chart
According to SpotCom data: The average price of LLDPE (7042) on August 17 was 8,366 CNY/ton, and the average price on August 21 was 8,508 CNY/ton, an increase of 1.69%. The average price of LDPE (2426H) on August 17 was 10,416 CNY/ton, and the average price on August 21 was 10,666 CNY/ton, an increase of 2.40%. The average price of HDPE (5000S) on August 17 was 10,512 CNY/ton, and the average price on August 21 was 10,575 CNY/ton, an increase of 0.59%.
Crude oil prices have risen due to geopolitical factors, increasing the cost of oil-based polyethylene and providing support for spot price increases. Coal-based costs remain stable, and with improved petrochemical profits, there is a strong willingness to maintain prices.
Multiple plants in China are undergoing concentrated maintenance, leading to a decrease in operating rates and a temporary reduction in domestic supply. Some grades of products are in short supply. Petrochemical and social inventories remain at moderate levels, with no significant inventory accumulation, providing some support for prices. As the maintenance concludes and plants restart, production will recover, and supply pressure will re-emerge.
The market is in a transition phase from the low season to the peak season, with strong expectations but weak actual performance. Agricultural film production is gradually entering the preparation cycle, and the start-up of greenhouse film production is slowly increasing. However, downstream demand is mainly driven by immediate needs, and large-scale restocking has not yet occurred. Overall orders for packaging, hollow products, and pipes are flat, with low production levels and a lack of new orders to drive growth.
Short-term costs and maintenance provide support, but demand is insufficient, and it is expected that polyethylene will face pressure under fluctuation.
