PE Prices Kept Climbing under Support of Cost and Futures Market
China’s PE market witnessed obvious growth in the week ended September 18. The cost support and the expected supply shortage were the main reason for the price hikes. With the commissioning of newly added units and the restarts of units in maintenance, the PE market prices may fall a little in the coming period.
China’s PE market moved up. Taking LDPE in East China as an example, the market prices were about RMB 12,450-12,550/mt on September 17, while those were about 11,900-12,150/mt on September 10, up RMB 400-550/mt W-O-W.
The specific reasons were as follows: First, the prices of crude oil, coal and methanol went up steadily, lending support to the PE market from the cost side. Second, the unit at Shenhua Baotou under went maintenance, so the output loss increased from last week. In the meantime, some producers lowered the operating load of some units. The supply pressure in the spot market was relieved somewhat.
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