In the first half of the month, the price of propylene glycol remained stable at the beginning and end, showing a wide V-shaped oscillation of “first falling, sideways, rebounding, and falling back”, without a unilateral trend. As of June 15th, the average production price of propylene glycol in Shandong region was 9833 yuan/ton, unchanged from the beginning of the month.

Core driving factors
Cost side traction
Epoxy propane first fell, then rose, and then fell back, completely dominating the trend of propylene glycol band. However, the traditional off-season demand downstream limited the upward space of propylene glycol. The highest increase of epoxy propane (pink line) reached 3.29%, while the maximum increase of propylene glycol was only 0.32%, showing a differentiation pattern of “raw material surge, small follow-up increase of finished products”.
Supply side support
In June, multiple sets of equipment underwent rotational inspections, resulting in a significant decrease of nearly 23 percentage points in operating rates. The market’s circulation of spot goods decreased, effectively stabilizing prices and preventing a deep decline.
Demand side ceiling
Unsaturated polyester resin (UPR) and polyether polyols have entered the summer off-season, and under high temperatures, end product companies have reduced their burden. Purchasing has only maintained rigid small orders, without centralized replenishment actions, and new orders have been light in transactions; Lithium battery electrolyte solvents, pharmaceutical/cosmetic grade propylene glycol have stable long-term orders, electronic grade high-purity sources are in short supply, and quotations have been higher than industrial grade for a long time to hedge against some off-season negative factors; Export orders remain stable, easing domestic spot pressure.
Market forecast:
At present, the industry’s equipment maintenance is ongoing, production is low, factory inventory is not under pressure, the rise of raw material epoxy propane is slowing down, and there is no centralized replenishment downstream. It is expected that propylene glycol will continue to fluctuate narrowly. Attention should be paid to the restart of the maintenance device.

Since 2026, the overall focus of the natural rubber market has steadily shifted upwards, presenting a game pattern of “weak reality, strong expectations”. As of June 12th, the price of natural rubber in Shengyi Society was 17566 yuan/ton, an increase of 14.50% within the year and 30.53% year-on-year. The current supply-demand structure continues to optimize, coupled with favorable weather cycles, and there is still upward momentum in the price of rubber in the future, but in the short term, it will mainly accumulate momentum through high-level fluctuations. ​
Recently, the National Oceanic and Atmospheric Administration (NOAA) of the United States officially confirmed the existence of the El Ni ñ o phenomenon. NOAA’s announcement states that there is a 63% probability that this phenomenon will sharply intensify during the late autumn to early winter period of this year. The risk of severe drought weather is prominent, and the market is expected to suppress the efficiency of rubber cutting in Southeast Asian production areas, providing strong speculation and fundamental support for rubber prices in the second half of the year. At present, the prices of raw materials in Thailand remain high, and the supply of raw materials in the market is tight. As of June 12th, the price of tobacco chips produced in Thailand was 95.00 baht/kg, a synchronous increase of 38.69% compared to the previous year; Glue price is 88.50 Thai baht/kg, up 55.95% year-on-year; The price of cup glue was reported at 74.80 Thai baht/kg, a year-on-year increase of 34.77%.

The resilience of the demand side is sufficient, and the combination of substitution effects forms favorable support. Domestic tire companies maintain stable production, while synthetic rubber prices remain high, compressing the price difference between the two and prompting downstream enterprises to increase the proportion of natural rubber usage, further boosting natural rubber consumption demand. As of June 10th, the construction of semi steel tires by domestic tire companies has reached around 70%; The construction of all steel tires by tire companies in Shandong region has reached about 6.80%. ​
The slight increase in inventory has a certain negative impact on the natural rubber market in the short term. As of June 7, 2026, the total inventory of Tianjiao bonded and general trade in Qingdao area was 696800 tons, an increase of 0.88% month on month. ​
Market forecast:
From a technical perspective: 1. Price position indicators show that the current positions on 10/20/30 are all low, and the “10 day oversold” signal was triggered on June 8, indicating a clear short-term weakness; However, on the 60/90 day, it remained at a medium high and annual high level, and the medium-term upward trend has not completely broken. 2. The moving average indicator shows that the current price has fallen below the 10 day moving average and is approaching the 20 day moving average. The short-term moving average has turned downward, forming pressure, while the medium-term moving average remains upward. ​
From a fundamental perspective, Southeast Asian production areas will enter the traditional peak production season from June to July. The concentrated launch of new rubber will bring about an increase in supply. Coupled with the temporary off-season in the tire industry, the pace of rubber price increases will slow down, and it is likely to maintain a wide range of fluctuations in the short term. In the medium to long term, with the gradual realization of the El Ni ñ o impact from August to December and the implementation of the production reduction effect, the price of rubber is expected to break through the previous high point. The long-term tight supply-demand balance pattern continues, with rubber prices prone to rise but difficult to fall, and the central market continuing to move upward.

The price of ethylene oxide will decrease in June 2026. According to data from Shengyi Society, as of June 5th, the average market price of epoxyethane in China was 6800 yuan/ton, a decrease of 10.53% from the market average price of 7600 yuan/ton at the beginning of the month (6.1).
On June 5, 2026, the mainstream market ex factory listing prices for ethylene oxide in various regions of China were as follows: the ethylene oxide market in East China was priced at 6800 yuan/ton to the outside world; The listed price of ethylene oxide in the South China market is 6700-6800 yuan/ton; The listed price of ethylene oxide in North China is 6650 yuan/ton; The listed price of ethylene oxide in the Central China region is 6800-7600 yuan/ton.
Analysis of the reasons for the significant drop in the price of ethylene oxide in June 2026
The significant drop in the price of ethylene oxide in early June 2026 is driven by five logical resonances: cost collapse, supply recovery, off-season demand collapse, high price destocking in the early stage, and macro sentiment.
1、 Cost side: High premium of crude oil+ethylene falls, production cost hard support collapses
70% of the cost of epoxyethane raw materials comes from ethylene, which anchors international crude oil and the Northeast Asian market. The source of this round of sharp decline is the complete clearance of the Middle East geopolitical premium that rose in March. In late May, the United States and Iran reached a framework agreement, and the Middle East conflict cooled down. Brent crude oil quickly fell from $112 per barrel to the range of $85-90 per barrel, ending geopolitical speculation. Crude oil led to a weakening of naphtha and ethane across the board; The CFR ethylene in Northeast Asia fell from $1050/ton in March to $720-750/ton in June, and domestic ethylene spot prices fell from 7700 yuan/ton to around 6200 yuan/ton. The production cost of EO decreased by 1100-1300 yuan per ton, and production enterprises had no cost incentive to raise prices, resulting in a passive decline in listed prices; The long-term low cost of ethane in the United States, coupled with the increasing export volume of ethylene and EO, and the impact of imported arbitrage sources on domestic spot pricing limits, further suppress domestic quotations.
2、 Supply side: Maintenance and partial resumption of production+loose supply in non maintenance areas, overall supply shifting from tight to loose
In June, ethylene oxide showed a pattern of partial maintenance and overall relaxation, offsetting the positive effect of reduced volume brought by maintenance, resulting in an increase in spot circulation and inventory accumulation. The main EO units that underwent centralized maintenance in May resumed production in early June, with a significant increase in supply from the core production areas in East China; Although some individual devices have entered maintenance, the increase in resuming production is greater than the decrease in maintenance, and the overall industry production has increased from 48% in May to around 70% in June; Northwest and North China maintain high loads of EO equipment without maintenance and refining facilities, while export sources continue to move southward to supplement the markets of East and South China. Regional price differences have narrowed, and the overall market supply has become loose; During the high price period from March to April, factory inventory was concentrated and realized in June. Private large companies such as Sinopec and PetroChina continued to lower their factory listing and offer discounts on shipments, leading to a continuous decline in market quotes.
3、 On the demand side, traditional downstream industries have entered a seasonal off-season, and terminal demand has weakened sharply

70% of the downstream EO is used for ethylene glycol, polycarboxylate superplasticizer monomers, and non-ionic surfactants. In June, multiple seasonality and industrial negative factors overlapped, resulting in a decline in downstream production depth and procurement of only small orders as needed, without centralized replenishment. The specific situation is as follows:
1. Polycarboxylate water reducing agent monomer (downstream of maximum rigid demand)
The new construction and infrastructure landing of terminal real estate fell short of expectations, and the operating rate of domestic mixed use enterprises decreased by 15% month on month; Combined with the rainy season in the south in June, the suspension of the national middle and high school entrance exams, and the busy farming season in the north, large-scale construction sites have been shut down, and the water reducing agent factory has only started operating by 25.5% (month on month -3.27 pct). The purchase volume of raw material EO has decreased by more than 30% year-on-year.
2. Non ionic surfactants (daily chemical, textile)
The off-season for textiles and daily chemical products has entered the traditional consumption off-season, and the operating rate of surface active factories has dropped to 42.5%. The factories strictly control the inventory of raw materials, avoid the risk of further price decline, observe price pressure, purchase in batches, and the large-scale procurement has basically stagnated.
3. Weakening of ethylene glycol matching
During the off-season for polyester and synthetic fibers, the spot price of ethylene glycol decreased synchronously. The profit of the integrated plant’s self-produced EO was reduced by switching to ethylene glycol, and the sales of EO increased, further increasing the circulation of commodity EO.
4. Buy upstream instead of downstream
The price continues to decline in a cycle, and the entire industry chain is holding onto the currency to observe. Downstream companies are avoiding losses from hoarding goods and are purchasing as needed. The market lacks speculative stocking demand to support the bottom.
4、 The pricing logic of the market has reversed in the early stage, with profit taking orders concentrated and leaving the market
The bullish speculative funds generated by geopolitical conflicts in March and April have gradually withdrawn in May, and pessimistic expectations have spread in June. Traders actively reduced prices and sold spot goods, forming a negative cycle of price reduction → wait-and-see → further price reduction; In the early high price stage, the market was bullish and consistent. After the double negative impact of cost and demand in June, the industry switched directly from “raising prices and being reluctant to sell” to “lowering prices and reducing inventory”. Leading refineries were the first to adjust prices, while small and medium-sized manufacturers passively followed suit.
5、 Macro and industry medium – to long-term overcapacity suppresses rebound space
In recent years, domestic EO has continued to invest in integrated refining and chemical supporting production capacity (Hengli, Shenghong, and Zhejiang Petrochemical have successively implemented supporting production capacity), leading to the normalization of overcapacity in the industry. The production capacity consumption ratio is close to 190%, and the demand increment cannot keep up with the production capacity investment. Prices lack medium – and long-term fundamental support, and the off-season bearish sentiment has amplified the magnitude of the correction.
Future forecast
At present, the rise in the ethylene oxide market is due to geopolitical factors, cost factors, and short-term supply tightening, while the decline is due to geopolitical factors, cost collapse, off-season demand collapse, and supply recovery; The June pullback is the valuation return of the skyrocketing market from March to April. The triple bearish trend of cost breaking first, demand landing in the off-season, and supply shifting from tight to loose is the essence of this deep decline. Short term fluctuations are expected to be mainly weak.

As of May 31, 2026, the reference price of n-butanol in Shandong Province, China was 6933 yuan/ton, a decrease of 733 yuan or 9.57% from May 1 (reference price of n-butanol was 7666 yuan/ton).

1、 Price Trend Review
In May, the n-butanol market in Shandong Province initially rose slightly, but the momentum of the upward trend was insufficient. The market opened up a unilateral downward trend, and the n-butanol market price continued to decline, with the downward trend continuing to widen. As of May 31, the n-butanol market price in Shandong Province was around 6900-7100 yuan/ton.
2、 Analysis of Core Influencing Factors
Mismatch between supply and demand, strong supply and weak demand
At the beginning of May, the overall supply performance of the n-butanol market was stable, and the supply and demand transmission was still acceptable. With the concentrated resumption of production of some maintenance units in the early stage, the supply of n-butanol in the market gradually increased. However, downstream demand markets were slow to digest the increase in supply, cautious in raw material procurement, and had a weak stocking sentiment. The supply and demand transmission was hindered, and the market formed a situation of strong supply and weak demand.
Weakened cost support: In May, the price of raw material propylene fell synchronously, and the production cost support for n-butanol loosened. As a result, the price of n-butanol was lowered, further exacerbating the downward trend.
Market sentiment: Downstream companies are generally watching from the sidelines, with a decrease in large-scale inventory replenishment behavior. The market lacks effective demand support, and prices are prone to falling but difficult to rise.
3、 Future forecast
In the short term, the pattern of loose supply and demand in the n-butanol market is still difficult to quickly reverse, and prices are likely to remain weak. In the future, more attention should be paid to the changes in the operating rate of n-butanol plants, as well as the support on the cost side and the recovery of downstream market demand.

1、 Price trend

On May 29th, the average market price of domestic grade ammonium sulfate was 1666 yuan/ton, and on May 1st, the average market price of domestic grade ammonium sulfate was 1910 yuan/ton. This month, the market price of domestic grade ammonium sulfate fell by 12.74%.
2、 Market analysis
The price of ammonium sulfate in the domestic market has dropped significantly this month. The coking level operating rate has been adjusted narrowly, and the operating rate of the internal level has decreased. In the first half of this month, the market price of ammonium sulfate increased slightly. In the second half of this month, the price of ammonium sulfate began to decline. There is a high inventory in the market, and the supply of ammonium sulfate exceeds demand. Due to the previous consecutive price increases and cautious downstream procurement, the market price of ammonium sulfate has dropped significantly. As of May 29th, the mainstream ex factory quotation for coking grade ammonium sulfate in Shandong region is around 1050 yuan/ton. Domestic grade ammonium sulfate, the mainstream ex factory quotation in Shandong region is around 1650-1680 yuan/ton.
According to the weekly K-bar chart from March 2, 2026 to May 18, 2026, it can be seen that the price of ammonium sulfate in China fluctuated during the cycle. The domestic price of ammonium sulfate fell significantly in May, with the largest drop being 6.02% in the week of May 18th.
3、 Future forecast
An ammonium sulfate analyst from Shengyi Society believes that the recent downward trend in domestic ammonium sulfate prices is the main reason. At present, terminal demand is weak, and the market transaction atmosphere is becoming less intense. It is expected that the domestic ammonium sulfate market price will continue to weaken and decline in the short term.

LLDPE (7042) had an average price of 8386 yuan/ton on May 22 and 8256 yuan/ton on May 28, a decrease of 1.55%. The average price of LDPE (2426H) on May 22nd was 11116 yuan/ton, and on May 28th it was 10750 yuan/ton, a decrease of 3.30%. The average price of HDPE (5000S) on May 22nd was 10237 yuan/ton, and on May 28th it was 10162 yuan/ton, a decrease of 0.73%.

The pre maintenance equipment has resumed production, and the supply is loose. The expected arrival of imported goods at the port has been fulfilled, and port inventory is gradually accumulating. Coupled with sufficient stocking by traders in the early stage, the market circulation of goods is abundant, and seller competition is intensifying. The social inventory has shifted from slow depletion in the early stage to obvious accumulation, and some traders are facing increased financial pressure. The proactive price reduction and shipment behavior has directly exacerbated the downward trend in prices.
The demand during the off-season has not improved, and the support for essential needs remains weak. The traditional off-season of agricultural film continues, and the operating rate of downstream enterprises remains low. Downstream industries such as packaging and injection molding have weak orders, and end product companies are purchasing on demand and on-demand. The overall procurement pace has slowed down, and the market lacks support for bulk transactions.
The support for crude oil has weakened. International crude oil prices have fluctuated widely and fallen, easing supply concerns caused by geopolitical conflicts and weakening cost support.
The loose supply pattern is difficult to change, and the off-season for agricultural film will continue. Downstream packaging and injection molding demand is unlikely to improve significantly, and the support for essential needs is weak. The short-term polyethylene market is expected to maintain a weak and volatile operation.

In May 2026, the domestic mixed xylene market fluctuated, showing an overall trend of initial decline, slight rebound in the middle, and another decline at the end of the month. The market center of gravity shifted downward throughout the month, and the overall market closed down. According to the Commodity Market Analysis System of Shengyi Society, from May 1st to 28th, the domestic mixed xylene market price decreased from 6813.25 yuan/ton at the beginning of the month to 6704.33 yuan/ton at the end of the month, with a cumulative price decrease of 1.6% during the period.
Cost aspect:
The overall cost support for mixed xylene in May was weak, and the market trend was closely linked to international crude oil and naphtha. International crude oil fluctuates frequently within the month, and there is a lack of sustained upward momentum overall. The periodic weakening of prices has led to synchronous pressure on the naphtha market. The decline in raw material prices for refining directly lowers the comprehensive production costs of refineries, making it difficult to form a strong bottom line for mixed xylene. Even if crude oil experiences a brief rebound during this period, driving up raw material prices slightly, the upward cycle is short and the magnitude is limited, resulting in insufficient transmission of cost benefits. Overall, the cost side has always been weak, which has become an important factor in the overall decline of mixed xylene prices this month.
Supply side:
In May, the overall supply of mixed xylene in the domestic market was loose. The operation of mainstream refinery facilities in China remains stable and the overall operating status is good, with only a few facilities undergoing short-term maintenance, which has a weak impact on the overall supply output. The stable release of export goods from refineries in the region, coupled with the normal arrival and storage of imported goods at the port, further supplements domestic circulation resources. The overall circulation of goods in the market is sufficient, and the inventory on the trading side remains at a regular level, indicating some competitive pressure on shipments. Affected by the overall weakening of the market, some merchants have voluntarily offered discounts to accelerate the circulation of goods, and the loose supply pattern continues to suppress the market price rebound space.
Demand side:
According to the Commodity Market Analysis System of Shengyi Society, the price trend of PX in the domestic market remained stable from May 1st to 28th. As of May 28th, the executed price in the four major regions of East China, North China, Central China, and South China was 9900 yuan/ton, unchanged from May 1st. The main equipment operated stably, and the product sales situation was normal.
International market: In May, the price of para xylene (PX) in the Asian region fluctuated downward. As of May 26th, the closing price of the para xylene market in Asia was 1068-1070 US dollars/ton FOB Korea and 1089-1091 US dollars/ton CFR China. The price has decreased by $198 per ton compared to April 29th.
The downstream demand performance in May was flat, and the follow-up efforts for essential needs were insufficient, making it difficult to drive the market to strengthen. The mainstream downstream of mixed xylene includes aromatic solvents, isomerization units, polyesters, coatings, and other fields. The overall production pace of various industries is slow, and the production enthusiasm is not high. The release of demand in the terminal consumer market is limited, downstream enterprises have poor finished product shipments, and inventory turnover is slow. As a result, downstream procurement tends to be cautious and mostly adheres to the on-demand procurement model, with few occurrences of centralized inventory replenishment. At the same time, there is a certain intention to lower raw material prices. Although there has been a slight rebound in temporary local demand, the coverage is relatively narrow and cannot reverse the overall weak demand situation. The demand side has always failed to provide effective support for the market.

Market forecast:
Based on the current market fundamentals, the domestic mixed xylene market will continue to operate mainly in a range of fluctuations in the short term. The cost side will be affected by the uncertainty of international crude oil, and the support strength will fluctuate. The loose supply pattern is also difficult to tighten significantly in the short term. Coupled with the slow recovery of downstream demand, the driving force for a significant increase in market prices is insufficient. However, as some refining units enter the maintenance cycle, the market supply of goods is expected to gradually tighten. At the same time, if the international crude oil market gradually stabilizes and recovers, cost side benefits will gradually emerge. In addition, with the gradual recovery of traditional demand in downstream industries, the willingness of terminal procurement is expected to slowly increase. Under the influence of multiple factors, the subsequent decline of the mixed xylene market will gradually slow down, and there is a possibility of the market stabilizing and recovering slightly. Focus on international crude oil price fluctuations, refinery equipment maintenance progress, port inventory changes, and downstream industry start-up and procurement trends in the future.

In the second half of May, there was a shift in the formaldehyde market pattern, showing a trend of bottoming out and rebounding, completely reversing the continuous downward trend since April. As of May 26th, the average price of formaldehyde in Shandong Province was reported at 1377 yuan/ton, an increase of 1.75% from the beginning of the month.

Driving factor analysis
1. Supply side: Proactive production reduction under continuous losses is the core support for price rebound
In mid May, the entire formaldehyde industry suffered serious losses, and manufacturers voluntarily reduced their operating rates. The national formaldehyde operating rate fell from around 50% in early April to 25% -30% in late May. The supply side contracted significantly, and the supply-demand pattern shifted from loose to tight balance, providing the most core underlying support for price rebound.
2. Demand side: The marginal improvement at the end of the off-season is the core catalyst for price rebound
In late May, the traditional off-season in the sheet metal industry came to an end, and some southern sheet metal manufacturers began stocking up in advance for the decoration peak season in late June, resulting in a clear marginal improvement in demand; At the same time, formaldehyde prices fell to a low level throughout the entire cycle, and downstream adhesive and coating manufacturers concentrated on replenishing inventory at low prices, releasing essential needs in a concentrated manner, directly driving a rapid rebound in prices.
3. Cost side: Methanol stabilizes at a low level, and manufacturers’ willingness to raise prices has significantly increased
In late May, methanol prices fluctuated at a low level without a significant downward trend, and cost support remained stable. Formaldehyde manufacturers no longer needed to hedge against cost declines by lowering prices, and their willingness to raise prices significantly increased. At the same time, the rebound in formaldehyde prices has driven processing profits to gradually recover from severe losses to near breakeven, and manufacturers have further strengthened their price push, forming a positive cycle of price rebound.
Market forecast:
It is expected that the formaldehyde market will experience strong fluctuations, with room for rebound and clear resistance above.
Fundamentals: The pattern of supply contraction will not change in the short term, and manufacturers have a strong willingness to raise prices; The traditional decoration peak season is approaching, and the marginal improvement on the demand side will be further enhanced; Supported by the decrease in port inventory and maintenance of some facilities, methanol still has a slight upward potential in the short term, with stable cost support.
Technical aspect: The short-term downward trend has been completely reversed, with the 10 day moving average turning upwards and prices above all short-term moving averages. A bullish trend has formed, and upward momentum still exists; Around 1420 yuan/ton above is the high point in mid April, which is also the pressure level of the 60 day moving average, with certain resistance and limited rebound height.

As of May 24th, the average market price of acetic acid was 3093.33 yuan/ton, an increase of 10 yuan/ton or 0.32% compared to the price of 3083.33 yuan/ton on May 18th.

Recently, the domestic acetic acid market has been mainly consolidating. The raw material methanol is still at a high level during the same period, and the cost pressure of acetic acid still exists; On the supply side, the recovery of acetic acid plants is slow, enterprise inventory is low, market sentiment is supportive, and acetic acid quotations are stabilizing; The demand in the terminal market is weak, downstream transactions are average, and there is urgent need to follow up on market purchases. The market fundamentals are poor, and the price of acetic acid fluctuated narrowly within the week.
Recently, the raw material methanol market has fluctuated and declined. As of May 24th, the average price in the domestic market was 3163 yuan/ton, a decrease of 1.77% compared to the price of 3220 yuan/ton on May 18th. The arrival volume of methanol at the port is low, inventory continues to deplete, and the price focus is relatively strong; Domestic methanol plant maintenance, low inventory provides good support for market mentality; Downstream parents are following up as needed, and the market is limited in its pursuit of high prices, with methanol fluctuating at high levels during the week.
The downstream acetic anhydride market is running weakly, with the average ex factory price of acetic anhydride dropping from 5800 yuan/ton to 5625 yuan/ton from May 18th to 24th, a decrease of 3.02%. The raw material acetic acid is being processed and operated, with average cost support and insufficient downstream purchasing on the demand side. The market trading atmosphere has weakened, and the acetic anhydride market has a bearish sentiment, resulting in a weak downward adjustment in prices during the week.
Market forecast: Currently, the operating rate of acetic acid is not high, and the supply side support is still acceptable. The price of raw material methanol is high, and cost pressure still exists. However, downstream demand is weak, and the transaction volume in the acetic acid market is average. There is a game of internal dynamics in the market. It is expected that the acetic acid market will stabilize and operate in the short term, and the market supply situation will be closely monitored in the future.

LLDPE (7042) had an average price of 8441 yuan/ton on May 15th and 8386 yuan/ton on May 22nd, a decrease of 0.65%. LDPE (2426H) had an average price of 11300 yuan/ton on May 15th and 11116 yuan/ton on May 22nd, a decrease of 1.62%. The average price of HDPE (5000S) on May 15th was 10320 yuan/ton, and on May 22nd it was 10237 yuan/ton, a decrease of 0.80%.

Supply side: Maintenance support weakened, overall marginal looseness. Although there is still some support for the loss of equipment maintenance during the week, the early maintenance equipment has been restarted one after another, and the industry’s operating rate has continued to rise from a low level, gradually showing pressure on the overall supply side. The overall social inventory is at a neutral to high level, with some varieties showing signs of accumulation. Coupled with the replenishment of imported goods, the trend of loose market supply has not changed, which continues to suppress prices.
On the demand side: The off-season characteristics are obvious, with rigid procurement being the main focus. The traditional peak season for agricultural film has basically come to an end, and the terminal operating rate continues to operate at a low level, causing the core driving force for polyethylene to disappear. The demand in other downstream fields such as packaging, injection molding, and pipe materials is also flat, with most orders being short-term essential needs. Downstream enterprises can purchase as needed, and market transactions are sluggish.
Cost aspect: High oil prices, strong bottom support. Crude oil has been repeatedly affected by geopolitical conflicts in the Middle East, with prices fluctuating at high levels, providing strong bottom support for the market and limiting the potential for significant price declines.
If there are no unexpected changes in crude oil or downstream demand, polyethylene prices are likely to maintain their current weak and volatile pattern. The rebound height is limited by demand, and the downward space is limited by cost support. Pay attention to changes in crude oil trends, downstream transactions, and equipment dynamics.