PE Inventory Levels Rise After the National Day Holiday
Introduction: As of October 10, China’s PE inventory increased by 13.76% compared with that on September 26. Specifically, the inventory at sample producers rose by 40.97% compared with that before the National Day holiday, that at sample ports grew by 2.54%, while the inventory at sample traders dropped by 2.92% WoW.
Total Domestic PE Inventory
Methodology: PE inventory involves PE inventory at major producers (including naphtha-based and coal-based sample producers), sample ports and sample traders.
China’s domestic PE inventory as of October 10 rose compared to September 26, with increases observed in the inventory levels at sample producers and sample ports but a decrease at sample traders.
PE Inventory at Producers
Inventory at naphtha-based sample producers: Sample coverage = 80%; inventory at coal-based sample enterprises: Sample coverage = 80%
PE inventory at producers increased by 42.56% compared with that on September 26, but decreased by 3.16% YoY. Despite China’s domestic producers actively reducing inventory before the National Day holiday to alleviate pressure, the recent decrease in PE output loss due to unit maintenance, the conclusion of phased restocking by downstream users, and inventory buildup during the holiday period collectively contributed to a significant accumulation of inventory at producers.
PE Inventory at Ports
Inventory at main ports: It refers to the inventory at Qingdao, Shanghai, Ningbo and Guangzhou ports.
This week, PE inventory at ports increased by 2.54% from that before the holiday. Following the holiday, the volume of imported resources arriving at ports edged up. However, with futures market prices declining and market participants adopting a bearish outlook, downstream producers only engaged in selective, need-based restocking at low prices. This limited transaction volume ultimately led to an increase in the inventory at ports.
PE Inventory at Traders
Inventory at sample traders: Sales volume of the sample traders takes up 40% of the total sales.
PE inventory at traders witnessed a 2.92% decrease this week compared with that on September 26. Before the holiday, traders offered discounts to minimize inventory accumulation during the break, which prompted some feedstock procurement by downstream producers. After the holiday, the spot market remained sluggish, with prices continuing their downward trend. While some downstream producers made modest purchases to replenish stocks, significant inventory buildup was observed at producers.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
Please click "Read more" for the full article.
