In the second half of July, the polyethylene market did not rise and opened a downward channel. LLDPE, LDPE and HDPE in East China all showed different degrees of decline. According to the data monitoring of the business agency, the decline range of the three major PE varieties ranged from 50 to 450 yuan / ton, of which the decline of LDPE in East China was the most prominent, with a decrease of 3.18% during the period (7.16-27).
| PVA 1788 (PVA BP17) |
Average price range of regional varieties and specifications on July 16 and July 27
East China LLDPE 7042 7416.67 yuan / ton 7216.67 yuan / ton – 2.70%
LDPE 2426h 9037.50 yuan / ton ￥ 8750.00 yuan / ton – 3.18% in East China
HDPE 5000S 8300.00 yuan / ton ￥ 8100.00 yuan / ton – 2.41% in East China
In the second half of July, the PE market mainly fell. With the restart of Zhongtian and Zhongsha devices, the operating rate rose, and the market supply increased compared with the previous period. At this time, the downstream was in the off-season. Under the influence of social and public health events, the factory operating rate was low, the demand was general, and the enthusiasm of entering the market was not high. Liansu futures has an obvious downward trend, which affects the mentality of the spot market. Manufacturers have lowered the factory price, polyethylene trend is weak. Business mentality is general, follow the decline mainly.
In terms of supply, the supply pressure increased during the week (7.17-24), the average operating rate of PE enterprises increased by more than 3%, the output increased by 14000 tons, and the maintenance volume decreased by 21200 tons. In terms of demand, the downstream agricultural film operation rose by 0.3% month on month, and the operating rate this week was 18.1%, while the packaging film operation decreased slightly, ranging from 0.1% to 67.1%.
In terms of futures, the price of plastic futures rebounded due to the supply pressure of the spot market and the impact of macro sentiment. The main plastic contract rose 0.21% on Monday (July 20), and then showed a downward trend for four consecutive days. As of the end of Friday (July 24), the price of plastic futures fell 145 within the week.
At present, the weakness of futures has affected the mentality of the spot market, and the maintenance of petrochemical plants’ devices has gradually recovered. Recently, the market supply pressure has increased, the downstream demand is general, and the import volume is low. In the short term, the market is still expected to fall.
| PVA 1799 (PVA BF17) |