In June, the domestic polyethylene industry weakened across the board, with a narrow range of fluctuations in the first half of the month, a concentrated sharp decline in the middle and late months, and a slight bottoming out rebound at the end of the month. According to data from Shengyishe Spot News, the average price of LLDPE (7042) was 8276 yuan/ton on June 1st and 7250 yuan/ton on June 29th, a decrease of 12.40%. LDPE (2426H) had an average price of 10583 yuan/ton on June 1st and 9050 yuan/ton on June 29th, a decrease of 14.49%. The average price of HDPE (5000S) on June 1st was 10145 yuan/ton, and on June 29th it was 9820 yuan/ton, a decrease of 3.2%.
The centralized resumption of production of domestic petrochemical maintenance facilities has led to an overall increase in production, coupled with the concentration of imported goods entering the port. Market inventory continues to accumulate, and the supply of circulating goods is significantly loose. Traders continue to lower prices to reduce inventory, exacerbating the pressure on spot sales.

The market is in the traditional off-season of demand, and downstream production of thin films has significantly declined. All downstream products of the entire category are being used and purchased without replenishing inventory. The demand for essential goods continues to be weak, and there is insufficient buying support. The concentrated contradiction between supply and demand has led to a sharp drop in prices.
International crude oil prices have fluctuated and weakened, and the support for petrochemical production costs continues to weaken. Manufacturers have continuously lowered their ex factory prices, and the continued weakening of the cost side has amplified the market’s downward space; The slight rebound of crude oil at the end of the month has driven up spot prices.
The short-term loose supply and demand pattern of polyethylene is difficult to quickly reverse, and downstream demand has not yet substantially rebounded, with limited room for price rebound.