LLDPE (7042) had an average price of 9550 yuan/ton on September 14th and 9491 yuan/ton on September 18th, a decrease of 0.61%. LDPE (2426H) had an average price of 12200 yuan/ton on September 14th and 12266 yuan/ton on September 18th, an increase of 0.55%. The average price of HDPE (5000S) on September 14th was 11100 yuan/ton, and on September 18th it was 10800 yuan/ton, a decrease of 2.70%.
In September, polyethylene maintenance facilities resumed production one after another, and the industry’s operating rate has increased. There are still plans to resume production of facilities in the future, and coupled with the expectation of new production capacity, supply pressure will gradually accumulate, and the reality of tight balance will shift towards a bearish expectation.
The overall downstream demand is weak, and only the demand for thin films has certain resilience. The peak season for agricultural film and wire drawing did not meet expectations, and the market maintained on-demand procurement.
Recently, crude oil has fluctuated at a high level, with a slight decline in oil prices and weakened cost support. The Federal Reserve’s interest rate hike has pushed up the US dollar, suppressing the center of gravity of commodity prices and increasing market volatility.
Short term: Polyethylene mainly oscillates at high levels. Low inventory levels are difficult to sustain a deep decline, but the resumption of production and high prices have limited room for sustained growth in demand.
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