China PE Prices Rise and Stabilize in the Short Term

By SKYSEVEN Chemical Technical Team · 2026-08-17

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Polyethylene prices initially rose before stabilizing at higher levels. According to SunSirs spot market data, the average price of LLDPE (7042) rose 1.43% from 8,158 RMB/ton on August 7 to 8,275 RMB/ton on August 13. LDPE (2426H) rose 1.47%, moving from 10,233 RMB/ton to 10,383 RMB/ton. HDPE (5000S) rose 0.48%, moving from 10,450 RMB/ton to 10,500 RMB/ton. Fluctuations in international crude oil prices caused corresponding shifts in the cost of oil-based PE, providing a floor for market prices, though upward momentum remained limited. Profitability continues to diverge between oil-based and coal-based production processes; coal-based costs remain relatively stable, exerting a restraining influence on spot prices.

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.

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