Polyethylene Market Prices Mixed Adjustments

Domestic Petrochemical Inventories: Polyolefin inventories from both oil and petroleum products reached 710,000 tons, an increase of 65,000 tons from last week.

PE Spot Market Analysis: Today, domestic PE market prices showed a stable but adjusted trend. In North China, only high-pressure grades remained stable, while low-pressure wire drawing grades saw a slight increase. Linear and low-pressure film grades saw a slight decrease in prices. In East China, only high-pressure grades remained stable, while linear, low-pressure film, and low-pressure wire drawing grades all weakened.

In South China, only linear grades saw a decrease, while high-pressure, low-pressure film, and low-pressure wire drawing grades remained stable. Ex-factory prices for PE manufacturers are currently showing differentiated adjustments, with some maintaining stable quotes, others reducing prices by 20-200 yuan/ton, and a few increasing prices by 10-200 yuan/ton.

The downstream market remains driven by rigid demand, with procurement focused on replenishing inventory on demand, and no proactive stockpiling is occurring. From the perspective of market circulation, the current available resources on the exchange are relatively limited, and traders are generally offering stable prices.

However, due to insufficient purchasing enthusiasm from end-users, actual transaction prices in the market are mostly showing a slight downward trend. The overall trading atmosphere on the exchange is relatively flat, and transaction activity is at an average level.

PE Spot Price Forecast: In the futures market, the L2601 contract price fluctuated narrowly in the evening session. The price continued to fluctuate in the morning session, with the price center of gravity shifting slightly downward. The price rose slightly in the afternoon session, but remained weak. Against the backdrop of the traditionally peak demand season of "Golden September", the polyethylene market supply side is experiencing new changes.

The PE units of Yulong Petrochemical and Shanghai Petrochemical are scheduled to enter maintenance today, and the time for the units to resume production is currently unknown. This maintenance is expected to result in a total capacity loss of 600,000 tons, causing temporary disruptions to the market supply structure. At the current market level, despite expectations of supply contraction due to plant maintenance, the release of end-user demand has fallen short of expectations, leading to a lack of market restocking.

To boost transactions, some traders are offering modest discounts, but actual transactions are largely negotiated between buyers and sellers, and the overall trading atmosphere has not seen a significant improvement. The temporary reduction in supply caused by plant maintenance will provide some support to the market.

However, given the uncertain timing of the resumption of production at the remaining maintenance plants and the lingering market expectations for the release of new production capacity, long-term supply pressure has yet to be fully alleviated, and demand-side support is limited. Overall, the PE market is likely to remain range-bound in the short term.

Mainstream PE Market Quotes:

PE Futures Analysis: September 1st, L2601 Opening Price: 7280, High: 7303, Low: 7221, Opening Volume: 468,822, Settlement Price: 7256, Yesterday's Settlement: 7317, Down 61, Daily Trading Volume: 324,382 lots, Deposited Funds: 2.386 billion, Inflow: 140 million.

Domestic PE Index: According to Tuduoduo data, the domestic HDPE spot index was 7667 on September 1, down 15%; the LDPE film spot index was 9696, down 0%; and the LLDPE spot index was 7348, down 43%.

Shenhua Auction Statistics: Today's linear auction volume was 155 tons, and today's transaction volume was 0 tons.

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