PE Spot Market Weak Stability
Domestic Petrochemical Inventory: Sinopec and PetroChina's polyolefin inventory totaled 710,000 tons, a decrease of 25,000 tons from yesterday.
PE Spot Market Analysis: Today, the domestic PE market showed an overall weak consolidation trend. In North China, only the price of low-density film grade remained stable, while the prices of linear, high-density, and low-density fiber grades all declined compared to yesterday, with price reductions ranging from 10-60 yuan/ton. In East China, only the price of low-density film grade remained stable, while the prices of linear, high-density, and low-density fiber grades declined, with price fluctuations ranging from 30-50 yuan/ton.
In South China, only the price of low-density film grade remained unchanged compared to yesterday, while the prices of linear, high-density, and low-density fiber grades all declined, with price reductions ranging from 50-100 yuan/ton.
The current PE market is exhibiting a mixed and differentiated adjustment trend amidst conflicting bullish and bearish factors. Upstream producers have not reached a unified price trend; some are choosing to maintain price stability to mitigate market volatility risks, while others are lowering prices by 30-300 yuan/ton to adapt to weak demand and boost order volume.
Only a small number of companies, relying on their resource advantages or demand for specific grades, have slightly increased prices by 50-100 yuan/ton, resulting in a "mixed" market price pattern. Affected by this, midstream traders lack confidence in the future market and are generally continuing their price reduction strategy to accelerate inventory turnover and maintain destocking.
Downstream sectors, due to a lack of overall demand, are only replenishing inventory based on immediate production needs, with limited purchasing enthusiasm, further contributing to a persistently poor market trading atmosphere and failing to provide effective price support.
PE Spot Market Forecast: In the futures market, the L2601 contract price weakened in the night session, and continued its downward trend in the morning session. Although there were short-term attempts at a slight rebound, they lacked sustained momentum, and prices fluctuated within a low range in the afternoon session. The PE market is currently operating stably overall, but structural imbalances on both the supply and demand sides remain prominent.
While there have been no new disruptions to the supply side, spot resources remain ample, and market inventories continue to be high. Coupled with insufficient downstream purchasing power leading to slow inventory reduction, supply-side pressure persists and exerts downward pressure on the market. On the demand side, downstream enterprises are generally cautious in their purchasing, mainly buying on an as-needed basis, with limited follow-up demand.
Although the operating rates of major consumption sectors such as agricultural film and packaging film have slightly increased, signaling a localized improvement in demand, this increase is small and far from sufficient to absorb the current market surplus. Therefore, the core supply-demand mismatch remains unchanged. In summary, the polyethylene market is expected to continue its weak and stable trend in the short term.
Mainstream PE Market Prices:
PE Futures Analysis: On November 5th, L2601 opened at 6871, reached a high of 6875, a low of 6798, held 553,147 contracts, settled at 6831, compared to the previous settlement of 6881 (down 50), with a daily trading volume of 290,462 lots, outstanding funds of 2.638 billion, and capital inflow of 71.18 million.
Domestic PE Indices: According to data from TuDuoDuo, on November 5th, the domestic HDPE spot index was 7472, down 0; the LDPE film spot index was 9071, down 45; and the LLDPE spot index was 7057, down 23.
Shenhua Auction Statistics: Linear PE auctioned 600 tons today, with a transaction volume of 34 tons. High-density polyethylene auctioned 200.65 tons today, with a transaction volume of 0 tons. The auction volume for low-pressure gas today was 0 tons, and the transaction volume was 0 tons.
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