August 10, 2024 – Despite the continued turbulence in the macro market this week, the polyolefin market remained relatively calm, albeit with prices steadily declining and a lack of market dynamism.
In the polyethylene market, demand is gradually reviving, with the demand for greenhouse films entering the storage phase, driving an increase in corporate orders. However, this trend has not provided effective support for market prices. In terms of pricing, the mainstream price of oil-based linear polyethylene in the northern region is 8250 yuan/ton, a decrease of 50 yuan/ton from last week. In East China, the price of oil-based linear polyethylene is 8300 yuan/ton, also down 50 yuan/ton from the previous week. Meanwhile, in South China, the price of oil-based linear polyethylene remains at 8470 yuan/ton, unchanged from last week. On the profit side, the oil-based polyethylene market is operating at a loss, with a gross profit of -11 yuan/ton, whereas the coal-based polyethylene market demonstrates strong profitability, with a gross profit of 1156 yuan/ton.
According to the Color Masterbatch Industry Network, the polypropylene market appears even more sluggish compared to the polyethylene market. Not only is demand weak, but supply has also increased, causing social inventory to rise to a high of 800,000 tons. This is a slight decrease of 10,000 tons from the previous working day but a significant increase compared to the same period last year. Regarding prices, the mainstream price of polypropylene fiber in East China is 7603 yuan/ton. Profitability data reveals that various polypropylene production methods are operating at a loss. Specifically, the gross profit for oil-based PP is -646.6 yuan/ton, coal-based PP is -289.6 yuan/ton, methanol-based PP is -678.67 yuan/ton, propane dehydrogenation-based PP is -814.39 yuan/ton, and externally sourced propylene-based PP is -270.67 yuan/ton. Overall, the polyolefin market showed differentiation this week, with polyethylene market demand reviving but prices remaining weak, while the polypropylene market faces greater downward pressure.