According to the monitoring of the commodity market analysis system of Shengyi Society, the average price of LLDPE (7042) was 7486 yuan/ton on July 1st and 7466 yuan/ton on July 31st, a decrease of 0.27%. LDPE (2426H) had an average price of 9550 yuan/ton on July 1st and 9516 yuan/ton on July 31st, a decrease of 0.35%. HDPE (2426H) had an average price of 8112 yuan/ton on July 1st and 7975 yuan/ton on July 31st, a decrease of 1.69%.
Polyethylene first fell and then rose in July, among which HDPE lacked upward momentum. On the demand side, agricultural film is in a low season of demand, with insufficient follow-up of new orders in the market and low operating rates. Downstream procurement is cautious, and the weak demand side continues to suppress the weak downward trend of polyethylene market. Domestic policy preferences and supply side reform 2.0 provide support for the polyethylene market, improving the mentality of industry players. Polyethylene has seen a significant increase in the second half of the month, with prices tentatively rising slightly. The crude oil market is volatile, with oil prices rising towards the end of the month and cost support still present. On the supply side, there is an expectation of an increase, and the maintenance equipment has been restarted. The supply side is sufficient.
Supported by domestic policies, the mentality in the market has improved somewhat; However, the improvement in supply and demand is limited, and it is expected that polyethylene will mainly fluctuate in a narrow range, with limited upward space.