China PE Prices Rise and Stabilize in the Short Term

With multiple domestic refining and chemical units entering maintenance cycles, the overall operating rate to PE has declined. immediate domestic spot supply has tightened, alleviating previous inventory accumulation pressures and limiting the circulation of goods. However, as maintenance units plan to resume production and overseas imports arrive, expectations of looser supply are rising, causing PE prices to stall and trade sideways after their initial surge.

The market remains in a traditional off-season to demand; downstream sectors—including packaging, injection molding, and piping—are making only sporadic purchases to meet immediate needs rather than stockpiling on a substantial scale, resulting in limited actual consumption. Agricultural film production has yet to enter its peak season, with only scattered stocking activity observed. Production of autumn greenhouse films in the north is set to begin between late August and September; rising expectations to the peak season are likely to drive a marginal improvement in demand.

In the short term, the market is likely to continue fluctuating at high levels. Crude oil costs and tight supply—persisting until maintenance concludes—provide price support, limiting the scope to a significant decline. A ramp-up in production from units returning online will gradually exert downward pressure on the market; without a substantial surge in crude oil prices, there is insufficient momentum to further price increases.