Supply of HDPE Low MI Injection to Rise on Improved Production Ratio
China’s PE producers raised their production ratio of HDPE low MI injection from 0% to 3.84% around early October. The mainstream prices were RMB 8,250-8,650/mt, staying at a low level among PE products. It’s estimated that China’s output will likely increase and some imported resources will arrive at ports intensively in October. Therefore, the overall supply will ramp up. Meanwhile, with the upcoming online shopping carnivals, the demand from downstream users will be passable, which will give certain support to the market. SCI reckons that the price of HDPE low MI injection will fluctuate downward in H2 October.
As no production arrangement of HDPE low MI injection was seen at China’s producers around the end of September, so China’s social inventory and imported resources at ports were consumed gradually, dragging down the supply. After the National Day holiday, the rising crude oil prices pushed up the LLDPE futures prices, so the price of HDPE low MI injection also rose rapidly. Later, with the crude oil price falling, the LLDPE futures prices also declined. In addition, some producers started to producer HDPE low MI injection, dragging down its price gradually. Currently, the mainstream prices were RMB 8,250-8,650/mt, which were at a low level among all PE products and close to that of HDPE film.
With the production ratio of HDPE low MI injection rising, the supply of Chinese-made resources will improve gradually. Meanwhile, the inventory is at a relatively low level and the price is above the medium level. The imported resources are expected to arrive at ports intensively in H2 October, so the overall supply is likely to increase. The operating rates of downstream industries will change limitedly, and the demand from downstream users will be passable due to the upcoming online shopping carnivals. On the whole, it’s estimated that the price of HDPE low MI injection will fluctuate downwards.
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