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.