LLDPE (7042) had an average price of 8301 yuan/ton on June 12th and 7941 yuan/ton on June 17th, a decrease of 1.34%. LDPE (2426H) had an average price of 10116 yuan/ton on June 12th and 9766 yuan/ton on June 17th, a decrease of 3.46%. The average price of HDPE (5000S) on June 12th was 10200 yuan/ton, and on June 17th it was 10125 yuan/ton, a decrease of 0.74%.
Recently, the international crude oil geopolitical risk aversion sentiment has subsided, oil prices have fluctuated and fallen, and the center of gravity of raw material costs has shifted downwards, dragging down the polyethylene market.
The maintenance benefits are gradually diminishing, and the circulation of goods is loose. Multiple sets of polyethylene plants will resume production in mid June. The recovery of shipping in the Middle East, the increase in the arrival volume of imported LDPE at ports, and the surplus of high-pressure material sources are the core reasons for the deepest decline in LDPE. Yangtze Petrochemical has been shut down for long-term maintenance, and there is a temporary shortage of low-pressure materials in the East China region, with some spot stocks resisting the decline.
Off season for agricultural film: The demand for plastic film and greenhouse film has all come to an end, and the production of agricultural film has fallen to a low level this year. The production of packaging film, injection molding, hollowing, and coating has declined, resulting in a backlog of finished product inventory. Downstream factories are all purchasing on demand without any advance replenishment behavior. Traders actively reduce prices and sell off inventory, exacerbating the price decline.
Continued loose supply coupled with downstream off-season drag has led to overall weak volatility of polyethylene in the short term. After a sharp decline, there may be a slight narrow recovery, but the rebound space is limited.
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