PE Spot Weak, Traders Cut Prices
Domestic petrochemical inventory: The inventory of polyolefins of the two oils is 840,000 tons, an increase of 45,000 tons from last week.
Analysis of PE spot market: Today, the overall domestic PE market showed a weak consolidation trend. Except for the small increase in low-pressure wire drawing prices in East China, the market prices in other regions were stable and weak, with a decline of 30-70 yuan/ton.
The cost-side crude oil market was affected by the decline in the US dollar exchange rate and the arrival of the summer travel peak season in the United States. International oil prices rebounded, and the PE units of Yanshan Petrochemical, Maoming Petrochemical, CNOOC Shell, and Dushanzi Petrochemical were shut down for maintenance, which alleviated the supply pressure to a certain extent.
However, downstream demand was limited, and there was a resistance to high-priced raw materials PE. The market mentality was bearish, and traders appropriately reduced prices to promote transactions.
PE spot trend forecast: In terms of raw materials, the crude oil market may be affected by favorable factors such as the weakening of US tariff policy pressure, the instability of the geopolitical situation, the start of the US summer travel peak, and the negative factors such as OPEC+ maintaining its position of increasing production and weak global crude oil demand.
It is also necessary to pay attention to the impact of related changes on international oil prices. In terms of supply, the number of PE units scheduled to be shut down for maintenance in the early part of this week is relatively large. However, some PE units that were shut down in the early part of this week, such as Sino-Korea Petrochemical, CNOOC Shell, and Maoming Petrochemical, with a production capacity of about 800,000 tons, have plans to restart.
It is expected that the impact of the shutdown of the on-site units may show a trend of increasing first and then decreasing. In terms of demand, as the Dragon Boat Festival holiday is approaching, some middlemen and downstream companies may have appropriate replenishment. Overall, the polyethylene market is expected to consolidate in a weak position in the short term.
Mainstream PE market quotes:
PE futures analysis: L2509 opening price on May 26: 7070, highest price: 7118, lowest price: 7055, position: 513654, settlement price: 7080, yesterday's settlement: 7120, drop: 40, daily trading volume: 330305 lots, deposited funds: 2.546 billion, capital outflow: 13.12 million.
Domestic PE index: According to Tuduoduo data, the domestic HDPE spot index on May 26 was 7730, down 17; the LDPE film spot index was 9147, down 31; the LLDPE spot index was 7372, down 22.
Shenhua auction statistics: Linear auction volume today is 270 tons, and today's trading volume is 30 tons. High pressure auction volume today is 0 tons, and today's trading volume is 0 tons. Low pressure auction volume today is 0 tons, and today's trading volume is 0 tons.
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.
