News summary
The polyethylene market rose slightly in May, with LLDPE and HDPE rising 0.0% respectivelycrashbandicoot™4.38% and 0.23%, while LDPE prices remained stable. The supply side slightly increased the ex-factory price due to the impact of enterprise maintenance, while the demand side performed generally due to the off-season of agricultural film. Polyethylene futures of DSE rose in shock, supporting the spot market. It is expected that the polyethylene market price will consolidate at a high level in the short term.
Newsletter text
[Polyethylene market demand is gradually picking up] The polyethylene market is rising slightly this week, and LLDPE(7042) prices have been increasing since May 13.crashbandicoot™4From 8474 yuan/ton to 8507 yuan/ton on May 17, an increase of 0.38%. At the same time, the price of HDPE(5000S) also increased by 0.23%, from 8637 yuan/ton on May 13 to 8657 yuan/ton. In terms of supply, although the preliminary maintenance equipment is gradually restarted, some companies are still in the maintenance period, and there is a supply gap in some sources. Petrochemical companies have raised their factory quotations. Some companies have a strong willingness to hold prices, which has brought positive support to the market. On the demand side, the operating rate of downstream polyethylene companies fell 0.28% from the previous week. Among them, the agricultural film industry has entered the off-season of production, the operating rate has dropped significantly, and the follow-up of orders has been slow. The downstream is mainly in need of purchasing and purchasing, which has insufficient support for polyethylene. Crude oil costs are consolidating at a high level and still have a certain supporting effect. The polyethylene L2409 contract on the Dalian Commodity Exchange rose 1.91% on May 17. The recent volatility of futures has supported the spot market to a certain extent. Enterprise maintenance in May is still in the centralized maintenance period, and there may still be good support on the supply side. However, the demand-side agricultural film is in the off-season, and the operating rate of packaging film is expected to decline. It is expected that there will be limited room for growth in polyethylene, or it will mainly consolidate at a high level.
