HDPE Small BM Price Inched up amid Dropping Production Ratio in June
The capacity of units related to the HDPE small BM production totaled 1,200kt/a. The production ratio of small BM was about 6.26%, and the mainstream prices were about RMB 7,600-8,200/mt. As the production ratio dropped, the market resources of small BM were digested quickly. Besides, there were limited imported resources. SCI predicts that the price of China-origin HDPE small BM will continue to go up by the end of June.
Currently, petrochemical companies that produce HDPE small BM include PetroChina Dushanzi Petrochemical, North Huajin Chemical, Zhejiang Petroleum & Chemical and Shaanxi Yanchang Coal Yulin Energy and Chemical. From late May to H1 June, the production ratio of HDPE small BM was in the range of 10%-13%. This week, the production ratio dropped to 6.26%. As the market supply was ample on the concentrated production, the market prices of HDPE small BM dropped somewhat. By June 18, the mainstream prices were about RMB 7,500-8,100/mt, down RMB 300-350/mt from that in H2 May.
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