China Polyethylene Prices Fluctuate at High Levels; Upward Potential Limited

According to SunSirs, polyethylene prices in China have experienced a rise but are fluctuating at high levels with limited upward potential. Between July 3 and July 9, the average price of LLDPE (7042) increased by 3.36% from 7,300 RMB/ton to 7,545 RMB/ton. LDPE (2426H) saw an 8.74% rise from 9,150 RMB/ton to 9,950 RMB/ton, and HDPE (5000S) rose by 2.93% from 9,812 RMB/ton to 10,100 RMB/ton.

The upward trend in international crude oil prices, driven by geopolitical volatility, has provided a price floor for polyethylene, affecting both futures and spot prices. However, several production units are still under maintenance, and delays in port arrivals have tightened spot supplies, prompting petrochemical producers to maintain firm pricing.

Despite these factors, the market is in a traditional off-season for demand, with low operating rates in sectors such as agricultural film, piping, and injection molding. While there is steady demand for packaging, downstream resistance to high prices is evident, with buyers purchasing only as needed. This lack of sustained buying interest has caused prices to stall at high levels, limiting further upward potential.