China's Polyethylene Prices Rose in October 2024
Polyethylene prices in China saw an increase in October 2024, driven by seasonal demand and supply constraints. However, the upward trend moderated towards the end of the month.
Polyethylene (PE) prices in China increased in October 2024, partly influenced by rising crude oil prices and geopolitical uncertainty in the Middle East. The market rebounded post-holiday periods, supported by strong domestic demand and supply-side limitations.
October marked the peak season for agricultural films, leading to a significant surge in PE demand. Simultaneously, scheduled maintenance at several production facilities reduced supply availability. By mid-month, firm quotations from enterprises sustained the upward price trend, although high-voltage PE products experienced price decreases due to increased supply.
As the month progressed, market dynamics shifted. Some high-voltage polyethylene production units resumed operations, easing supply constraints and moderating price increases for these specific products. Market demand showed signs of tapering, and resistance to higher prices grew, leading to cautious buying patterns from downstream customers. By the end of the month, PE prices saw a slight downturn as suppliers offered discounts amid low market enthusiasm.
Looking ahead, maintenance activities at PE plants are expected to be minimal in the fourth quarter, suggesting steady supply. Additionally, new production capacity is anticipated to come online. Combined with a seasonal decline in agricultural film demand in November, these factors are expected to contribute to a generally weaker price trend for the remainder of the year.