​How will LDPE Market Develop as It Fluctuated Down in September

How Will LDPE Market Develop as It Fluctuated Downwards in September

In H2 September, the overall LDPE market fluctuateddownwards. As of October 18, the mainstream LDPE prices were RMB7,700-8,700/mt. The market deals decreased recently, and the inventory atPetroChina and Sinopec decreased slowly.

In H2 September, the overall LDPE market fluctuated downwards. As of October 18, the mainstream LDPE prices were RMB 7,700-8,700/mt. That is because the futuresprice fluctuated downwards, amid a bearish market trading atmosphere, and some Petrochemical companies reduced their ex-works prices. Besides, the downstream producers showed resistance to the high-priced feedstock, which suppressed thedeals of players, and the feedstock price started to decrease. Most endproducers made replenishments when prices were low, and the inventory at PetroChina and Sinopec decreased slowly.

Accordingto SCI, in September, the LDPE output in China was 232.1kt, up 5.9% M-O-M. Theimport volume of LDPE in September will be 290kt, down 5.8% M-O-M. The overall LDPE supply volume was 524.1kt, which barely changed. As of October 18, theunit under maintenance was the 120kt/a PF LOOP LDPE unit at Zhongtian HechuangEnergy, which was shut down on October 9 for 10 days. Next week, there will beno newly-added LDPE unit under maintenance, and the imported LDPE resourceswill arrive at ports gradually, and the LDPE supply will be sufficient.

In October, the operating rate of agricultural film industry increased by 24% to 62%. After China’s National Day holiday, the units at most agricultural filmproducers put into operation normally, so the operating rate increased greatly.In October, the agricultural film market will improve, and the demand for thegeneral-proposed mulching film will be low. In general, the overall demand forthe agricultural film in October will increase, and the output will be morethan that in September.

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