【Soaring High】Price jumps by nearly 2,000 yuan per ton! Sudden price increase notice!

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This week, the price of polyethylene in the PE market continued to decline, with some consolidation observed during trading hours as the weekend approached. At the beginning of the week, linear futures weakened, and several petrochemical companies reduced their ex-plant prices; this led to an increasing bearish sentiment in the market, with suppliers gradually lowering their quotes as well. Although futures opened higher during the week, this provided limited support for the market; some petrochemical products continued to see price drops, and sellers moved goods slowly, resulting in prices remaining low. As the weekend approached, most players adopted a wait-and-see attitude, and prices stayed stable during trading sessions. Downstream demand remained weak throughout the week, with transactions focusing on negotiations. The current linear market price ranges from 9,150 to 9,500 yuan per ton, representing a decrease of around 100 yuan per ton on a month-on-month basis ； The price of high-pressure grade products is between 9,300 and 9,850 yuan per ton, representing a decrease of around 50 yuan per ton on a month-on-month basis ； The prices of various low-pressure products have all dropped, by amounts ranging from 100 to 400 yuan per ton. Prediction: Upstream crude oil prices are likely to continue falling next week, reducing the support for PE costs. On the supply side, the reduction in maintenance facilities and the slow pace of inventory reduction in the petrochemical sector exert significant pressure on the market. However, due to the continuous price drops in the earlier period, most materials are now at relatively low levels, which may provide some support for a slight price rebound. At the same time, the resumption of operations in the plastic film and other industries is gradually increasing, which provides some stimulus for the demand for raw materials. It is expected that the PE spot market will enter a pattern of narrow fluctuations next week, with the mainstream price of LLDPE ranging between 9,150 and 9,500 yuan per ton. This week, CPP prices for PP raw materials have declined and are now consolidating, with the supporting effect of costs weakening. At the beginning of the week, petrochemical ex-plant prices declined, leading to a slight drop in the PP market. In the later period, petrochemical prices saw partial adjustments; the PP market remained stable with only slight fluctuations. CPP manufacturers faced poor order volumes, so most of them reduced the prices of their films in an effort to facilitate sales. Currently, the standard pricing for ordinary composite films in North China is between 11,600 and 11,800 yuan per ton, while in East China it ranges from 11,800 to 12,200 yuan per ton. In South China, the price of ordinary composite films without VAT is between 10,700 and 11,100 yuan per ton; factories mainly produce on order. Prediction: Regarding the trend of oil prices next week, the oil market remains tilted downward, with $60 per barrel unlikely to serve as effective support. Regarding upstream raw materials, weak demand on the downstream side means that the imbalance of supply exceeding demand in the market cannot be resolved, resulting in continuous declines in market prices. The PP market price is expected to remain in a downward trend. CPP enterprise orders are average, with companies mainly waiting to see how raw material prices develop. It is expected that the CPP market will see price corrections in the coming week; it is advised that industry players keep an eye on PP futures and raw material trends. The price for composite films in East China is likely to range between 11,800 and 12,200 yuan per ton, with prices to be determined on a case-by-case basis. This week, domestic PVC prices declined at an accelerated pace, leading to panic in the market. The price decline is mainly due to the continuous increase in PVC inventory levels; some warehouses in East and South China are experiencing overflow conditions. Additionally, demand from downstream industries has recovered slower than expected. In the north, environmental regulations are affecting business operations, resulting in poor recovery for small and medium-sized enterprises, while in the south, difficulties in recruiting workers are impacting overall production rates. Affected by various negative factors, PVC futures dropped sharply, which led to priced goods putting pressure on the spot market. On Wednesday, as PVC futures stabilized after a sharp drop, spot transactions also saw some improvement. As of the close on Thursday, the average price of SG-5 produced by the calcium carbide method in China was 6,285 yuan per ton, down 255.6 yuan per ton from the previous week, representing a decline of 3.9% ； The average price of PVC1000 produced by the ethylene method is 6,668 yuan per ton, down 188 yuan per ton from last week, representing a decline of 2.74%. Forecast: Overall, raw material prices remain stable, with only slight downward trends in some areas. The pressure on spot inventory is nearly at its peak, leaving little room for further increases. Downstream demand is gradually recovering, but purchasing enthusiasm remains low. It is expected that the supply and demand balance for PVC may see a gradual improvement in the coming period, but the supply level will remain high. There are still no positive factors related to maintenance activities, nor are there any significant advantages from exports; therefore, it is anticipated that the PVC market will continue to exhibit a weak and volatile trend next week. It is estimated that the mainstream price of SG-5 in East China will be around 6,230–6,350 yuan per ton, while in South China it will be around 6,250–6,400 yuan per ton for pick-up.