According to the monitoring of the commodity market analysis system of Shengyi Society, the average price of LLDPE (7042) was 7453 yuan/ton on August 1st and 7441 yuan/ton on August 11th, a decrease of 0.16%. LDPE (2426H) had an average price of 9516 yuan/ton on August 1st and 9533 yuan/ton on August 11th, an increase of 0.18%. HDPE (2426H) had an average price of 7975 yuan/ton on August 1st and 7987 yuan/ton on August 11th, an increase of 0.16%.
Since August, polyethylene has fluctuated with narrow range operations. The favorable domestic policies provide certain support for the polyethylene market. The pre maintenance equipment on the supply side has been restarted one after another, and there are expectations of an increase on the supply side. On the demand side, in early August, the downstream is in a low season of demand with limited new orders. The market is cautious and lacks support. In late August, the downstream will prepare in advance for the peak season, and there is a positive expectation on the demand side. Due to market concerns that the new round of US tariffs will drag down the global economy, oil prices fell sharply last week, suppressing the polyethylene market.
Loose supply, positive expectations on the demand side, and policy support are expected to lead to narrow range fluctuations in polyethylene.