According to the data monitoring of business agency, in the first ten days of July (July 1-9), the overall trend of domestic PE spot market showed a continuous upward trend, among which LDPE rose the most significantly, with an increase of 6.52% during the period. Although it is in the off-season of terminal demand, due to the centralized maintenance of petrochemical units, the market supply pressure is not big, which has certain support for some regions.

Average price range of regional varieties and specifications on July 1 and July 9

East China LLDPE 7042 7050.00 yuan / ton 7450.00 yuan / ton + 5.67%

LDPE 2426h 8437.50 yuan / ton ￥ 8987.50 yuan / ton + 6.52% in East China

In East China, HDPE 5000S 7816.67 yuan / ton: 8300.00 yuan / ton + 6.18%

PE spot market three major varieties pull up sharply

In July, the prices of the three major varieties in the PE spot market continued the upward trend in June and continued to pull up sharply. At present, the centralized maintenance of petrochemical enterprises is not over, the daily output of petrochemical enterprises remains at a low level, and the spot supply pressure is not great. Petrochemical enterprises have continuously raised the ex factory price. Due to the low price of wire drawing goods in the early stage, the current price increase of wire drawing materials is the most obvious, with the increase of 250-550 yuan / ton. The rising cost has brought a certain boost to the market. The attitude of shippers is better, and they mainly follow the trend.

Continuous high opening of polyethylene futures drives up the spot market

In terms of futures, the price of plastic futures was significantly higher due to the impact of macro sentiment and reduced supply. The main plastic contract rose by 3.31% on Monday (July 6), and then rose for two consecutive days. As of the end of Thursday (July 9), the price of plastic futures rose by 4.14%. Boost the spot market trading atmosphere, PE spot market price is firm, continue to act on the main.

The lack of terminal demand has curbed the rise

In terms of demand, the current demand is still in the low season of downstream demand. This week, the overall operating rate of agricultural film is about 15%, slightly increased compared with the previous period, and the operating rate of plastic film is basically flat. Some medium-sized and large-scale enterprises maintain certain production, while others mainly carry out periodic production or shutdown. The overall demand of downstream users is not high, and they are against the current high price goods source. They replenish more goods on demand and give priority to small orders. On the whole, there is no obvious increase in the order volume. The factories are cautious and wait-and-see, and the market transaction atmosphere is flat, which plays a certain role in curbing the price rise.

After the market in the short term or ushered in a correction in the long term, there are still rising expectations

At present, some units of the enterprise are still in the state of shutdown and maintenance, and the impact of social and public health events on the domestic market is limited. The downstream gradually returns to work and production, the operating rate is significantly increased compared with the previous period, and the downstream demand gradually rises in the later stage. At present, the ex factory price of petrochemicals is high, but the futures market is no longer rising, and the international oil price is falling sharply. To a certain extent, it depresses the market confidence and aggravates the wait-and-see mentality of the downstream. It is expected that the PE market will usher in a correction in the short term, and there is still a long-term rise expectation.