Price Trends

According to Todudu data monitoring, the domestic LLDPE (7042) price was announced at RMB 8154.29/mt on July 17th, and the average price was RMB 8061.43/mt on July 26th. The decline during the period was 1.14%, down 10.68% from June 1st.

According to Tuo Du data, July 17 LDPE (2426H) ex-factory average price of 1056.67 yuan / ton, July 26 average price of 10,150.00 yuan / ton, down 3.94% year-on-year, compared with a drop of 7.04% last month. June 1

According to the monitoring of TuoDu data, the average ex-works price of HDPE(5000S) was RMB 8,916.67/ton on July 17, and RMB 8,683.33/ton on July 26, down 2.62% during the period, and 10.63% lower than that of June 1, according to the monitoring of TuoDu data.

Analytical Review

This week, the domestic PE market prices are weak and difficult to change. The three spot varieties continued to fall, and prices also fell. LDPE was the biggest drop this week, down nearly 4%. All prices of LDPE and HDPE declined. There is no obvious advantage in the market and the industry is in a general state of mind. Recently, the international crude oil price has been shocked down, and the rising cost has had a negative impact on the market. Ex-works prices of most petrochemical companies were cut by RMB 100 to 300 per ton. There was no obvious change in the downstream business condition, with poor start-up rate and limited enthusiasm to enter the market. Merchant sentiment was low and prices fell.

On July 26, PE futures 2209 opened at KRW 7,865, with a high of KRW 7,955 and a low of KRW 7,785, and closed at KRW 7,906, with a pre-settlement price of KRW 7,808, and a settlement price of KRW 7,860, with a high of KRW 7,955 and a low of KRW 7,7,7,9860. (Quotation unit: Won / ton)

Aftermarket

At present, the overall trend of international crude oil is still weak. Due to the lack of market cost support, most of the petrochemical companies' ex-factory prices are falling. The start rate is not as good as in previous years. The market rebound is not strong. This is not enough. PE spot market is expected to continue to fall in the short term.

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