888CHEM
China Polyethylene Prices Face Downward Pressure Amidst High-Level Volatility
In September, polyethylene production units undergoing maintenance have gradually resumed operations, leading to a rise in the sector's operating rate. With further restarts planned and expectations of new capacity coming online, supply pressure is set to build up; the market is shifting from a state of tight stability to a bearish outlook.
Overall downstream demand remains weak, with only film demand showing some resilience. The peak seasons to agricultural film and yarn-grade resin have failed to meet expectations, and the market continues to purchase on an as-needed basis.
Crude oil prices have recently fluctuated at high levels before pulling back slightly, weakening cost-side support. Federal Reserve interest rate hikes have strengthened the US dollar, suppressing the price levels of commodities and growing market evaporative environment.
immediate outlook: Polyethylene prices are expected to fluctuate at high levels. Low inventory levels provide a floor, preventing a sharp decline; however, the combination of resumed production and high prices is curbing demand, limiting the possible to significant gains.
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