China PE Market Oct 13th Update
Domestic Petrochemical Inventories: Polyolefin inventories from both oil and gas industries reached 840,000 tons, an increase of 20,000 tons from last week.
PE Spot Market Analysis: Today's domestic PE market prices showed a mixed trend of stability and weakness. In North China, prices for linear, high-pressure, low-pressure film, and low-pressure wire drawing grades all declined compared to yesterday, fluctuating between 20 and 110 yuan/ton.
In East China, only high-pressure grades saw a slight decline, while prices for linear, low-pressure film, and low-pressure wire drawing grades remained stable. In South China, only low-pressure wire drawing grades saw a decline, while prices for linear, high-pressure, and low-pressure film grades all remained unchanged compared to yesterday. The current PE supply side of the market exhibits characteristics of "stability with adjustments and differentiated performance."
Most manufacturers maintain their original ex-factory prices, while a few adjust their quotes based on their inventory and sales rhythms. Some companies reduce prices by 10-200 yuan/ton to boost shipments, while a very small number increase prices by 50-200 yuan/ton. However, price increases have not become mainstream, and overall, the supply side has little influence on prices.
On the demand side, the trend of "essential demand driving cautious purchasing" persists. Downstream companies' purchasing activity remains generally subdued, primarily focused on replenishing existing inventory. Buyers tend to buy on dips, with little willingness to proactively acquire goods. Driven by weak demand and a bearish market sentiment, PE spot prices are currently declining. Market participants are cautious about future market outlooks, making it difficult to significantly increase actual trading volume, ultimately resulting in a market trend of "falling prices and thin trading."
PE spot price forecast: In the futures market, the L2601 contract's night trading price fluctuated and consolidated within a range, with a slight rise and then a fall. Prices initially bottomed out and rebounded in the morning session, before fluctuating and weakening. Prices fluctuated weakly in the afternoon session, remaining stagnant at a low level. The current PE market faces the dual pressures of "increasing supply and weak demand," resulting in a significant downward trend.
On the supply side, Qilu Petrochemical's PE unit is expected to resume production today. The release of 140,000 tons of production capacity will further replenish the market. This will undoubtedly exacerbate the easing supply situation amidst already significant inventory pressures.
Demand continues to fall short of expectations. The previously anticipated peak season demand has yet to materialize, and downstream orders remain at a mere demand level, providing limited support for the market. Amidst the supply-demand imbalance, retailers are generally using profit-sharing to reduce inventory pressures, further pushing prices downward. Overall, the polyethylene market is expected to continue its weak downward trend in the short term.
Mainstream PE Market Quotes:
PE Futures Analysis: October 13th, L2601 Opening Price: 7015, High: 7034, Low: 6975, Open Interest: 564,785, Settlement Price: 7005, Yesterday's Settlement: 7052, Down 47, Daily Trading Volume: 280,022 lots, Deposited Funds: 2.761 billion, Inflow: 12.72 million.
Domestic PE Index: According to Tuduoduo data, on October 13th, the domestic HDPE spot index was 7552, down 10 points; the LDPE film spot index was 9328, down 38 points; and the LLDPE spot index was 7186, down 13 points.
Shenhua Auction Statistics: Today's bidding volume for linear products was 700 tons, with 60 tons traded. Today's bidding volume for high-pressure products was 400 tons, with 0 tons traded. Today's bidding volume for low-pressure products was 0 tons, with 0 tons traded.
Our platform connects hundreds of verified Chinese chemical suppliers with buyers worldwide, promoting transparent transactions, better business opportunities, and high-value partnerships. Whether you are looking for bulk commodities, specialty chemicals, or customized procurement services, TDD-Global is trustworthy to be your fist choice.
