August 25 news: Curve comparison chart
According to SpotCom data: The average price of LLDPE (7042) on August 18 was 8,471 CNY/ton, and the average price on August 25 was 8,550 CNY/ton, an increase of 0.92%. The average price of LDPE (2426H) on August 18 was 10,533 CNY/ton, and the average price on August 25 was 10,733 CNY/ton, an increase of 1.90%. The average price of HDPE (5000S) on August 18 was 10,550 CNY/ton, and the average price on August 25 was 10,650 CNY/ton, an increase of 0.95%.
Multiple polyethylene plants in China are undergoing concentrated maintenance, leading to a decrease in overall production, and a short-term reduction in the availability of Chinese goods. Petrochemical plant inventories remain low, providing support to the spot market. However, as maintenance concludes in September, these facilities will gradually restart, leading to a return of production levels, and supply pressures will re-emerge.
The market is in the transition phase between the low and high seasons. Overall, downstream operations are maintaining low levels, with most purchases made on an as-needed basis. Agricultural film is gradually entering the inventory preparation cycle, which brings some expectations of a peak season, but the actual release of orders is relatively slow. Downstream consumers have limited acceptance of high-priced raw materials, lack initiative to replenish inventory, and demand is insufficient to drive a significant increase in prices.
Geographical factors have pushed up crude oil prices, increasing the cost of oil-based PE raw materials, which provides a bottom support for the market, compressing the processing profits of oil-based enterprises. The price of coal for coal-based routes remains stable, with little change in costs.
The current market trend is driven by a tight balance of spot supply due to maintenance and increased costs, but the actual demand is weak. In the short term, as maintenance has not yet ended and costs remain supported, the market will mainly experience high-level fluctuations.
