China HDPE Small Blow Molding Supply to Decline on Falling Production Ratio
Currently, a total of 1,610kt/a capacity was involved in the production of HDPE small blow molding material, taking up 5.62%. The mainstream prices were RMB 8,000-8,350/mt. In H2 March, it’s estimated that the market supply will trend down. Meanwhile, with the downstream production recovering gradually, the demand will improve. Therefore, SCI reckons that the price of HDPE small blow molding material will fluctuate upwards.
The major producers of HDPE small blow molding material in China include North Huajin Chemical, Zhejiang Petroleum & Chemical, a joint venture in South China and Sinopec Maoming Petrochemical, with a total capacity of 1,610kt/a, accounting for 5.62%. The production ratio declined gradually to a medium-to-low level.
As the production ratio of HDPE small blow molding was at a high level around the Spring Festival holiday, and most producers remained in normal production during the holiday, so its inventory piled up. Downstream users replenished their stocks before the holiday, so their buying appetites were tepid, dragging down the price. As most downstream users resumed production after the Lantern Festival, their operating rates gradually improved. Meanwhile, the production ratio declined, so the price ramped up to around RMB 8,000-8,350/mt on the declined supply.
The mainstream price in North China was RMB 8,000-8,300/mt. The local resources were limited, and the inflow of some resources was unstable, so low-priced resources were rarely seen. In East China, the mainstream price was RMB 8,000-8,300/mt, and most resources were local supply with limited inflow. In South China, the mainstream price was RMB 8,100-8,350/mt. The local resources were abundant with limited inflow. However, the production ratio declined and the supply trended down gradually, pushing up the price.
In the future, the supply of Chinese-made resources will decline due to tepid production enthusiasm, while the imports will remain stable, so it’s estimated that the supply of HDPE small blow molding may decline in H2 March. In addition, the demand will likely improve with downstream users resuming production. Some replenishments will be seen on a need-to basis, which will give certain support to the market. On the whole, it’s estimated that the price of China’s HDPE small molding material will fluctuate upwards in H2 March.
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