September 18 News: Curve Comparison Chart
According to Spotcom data: The average price of LLDPE (7042) on September 14 was 9,550 CNY/ton, and the average price on September 18 was 9,491 CNY/ton, a decrease of 0.61%. The average price of LDPE (2426H) on September 14 was 12,200 CNY/ton, and the average price on September 18 was 12,266 CNY/ton, an increase of 0.55%. The average price of HDPE (5000S) on September 14 was 11,100 CNY/ton, and the average price on September 18 was 10,800 CNY/ton, a decrease of 2.70%.
In September, polyethylene maintenance facilities in China are gradually resuming production, leading to an increase in the industry's operating rate. With more facilities planning to resume production and the expectation of new capacity coming online, supply pressure is expected to gradually accumulate, shifting the current tight balance towards a more bearish outlook.
Downstream overall demand is weak, with only film demand showing some resilience. The peak seasons for agricultural films and drawing did not meet expectations, and the market maintains procurement based on demand.
Recently, crude oil has been fluctuating at high levels, with oil prices slightly declining and the cost support weakening. The Federal Reserve's interest rate hike has pushed up the US dollar, suppressing the price levels of commodities, leading to increased market volatility.
In the short term, polyethylene prices are expected to fluctuate within a high range. Low inventory levels provide some support and prevent prices from falling sharply; however, resumed production coupled with high prices is curbing demand, thus limiting the room for sustained significant price increases.
