The trend of the PE spot market may remain weak in the short term

LDPE was lowered most significantly this week, at 150-400 yuan / ton; HDPE reduction range of 100-300 yuan / ton; LLDPE variety adjustment range is 50-300 yuan / ton
.
Due to the reduction of ex-factory prices by petrochemical companies, confidence in the market is weak
.

In terms of demand, the current agricultural film is in the off-season of production, the linear demand follow-up is insufficient, the market transaction atmosphere is general, and the power rationing in the sub-region of southern China affects the start of downstream enterprises, and there is an expectation
of lower demand for raw materials.
On the supply side, newly put into production capacity resources have entered the market one after another, and the domestic supply has increased significantly, which has also brought certain negative
benefits to the market.
Merchants actively shipped, slightly concessions stimulated downstream market procurement, and the market lacked favorable guidance
.

Liansu futures have recently fallen significantly, bringing certain bearishness
to the spot market.
On May 28, polyethylene futures 2109 opened at 7760, the highest price was 7875, the lowest price was 7655, the closing price was 7665, the previous settlement price was 7820, the settlement price was 7755, down 155, or 1.
98%, the trading volume was 688619, the position was 400234, and the daily increase was 42154
.
(Quotation: yuan/ton)

At present, the power rationing in the sub-region of South China has affected the start of downstream enterprises, and there is an expectation of low demand for raw materials, and agricultural film is in the traditional production off-season, and market demand has weakened
.
Domestic PE supply is also under certain pressure, petrochemical companies reduce factory prices to affect market mentality, merchants follow the market price reduction, the market lacks favorable guidance, it is expected that the trend of PE spot market in the short term may remain weak
.