Dec Supply of HDPE Low MI Injection to Fall on Declined Production Ratio
According to SCI, China’s PE producers reduced their production ratio of HDPE low MI injection from 9.78% in early November to 3.14% in mid-December. SCI reckons that the supply may decline in H2 December.
With limited arrivals of imported resources at ports recently, the supply was tight. From H2 October, China’s producers proactively maintained the production ratio of HDPE low MI injection at a medium-to-high level, so the supply improved notably, dragging down the market price. Some producers switched to the production of HDPE film and HDPE pipe, reducing the production ratio of low MI injection gradually. Currently, the mainstream prices were RMB 7,920-8,300/mt, which were at the lowest level among all HDPE products in North China and East China. In south China, the prices were slightly higher than that of small blow molding.
With the production ratio of HDPE low MI injection falling and the delayed start-up of units at PetroChina Guangdong Petrochemical and Sinopec Hainan Refining and Chemical, the supply of Chinese-made resources will likely decline gradually. As for imports, with low inventory and limited arrivals of imported resources, the price is at a high level. The declined supply may give certain support to the price. As for demand, with the online shopping carnivals coming to an end, downstream orders will trend down, and the end demand will weaken. However, with the upcoming Spring Festival, some replenishments may be seen. On the whole, it’s estimated that the price of HDPE low MI injection will fluctuate within a narrow range in H2 December.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
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