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Polyethylene prices in China rose in October 2024, particularly driven by an uptick in crude oil prices. The Middle East faced tumultuous conditions amid Iran’s sortie against Israel, adding a layer of uncertainty to the market.

Following the holiday period, the polyethylene market in China rebounded, supported by strong seasonal demand and a range of positive conditions in the domestic market.

October marked the peak season for agricultural film, leading to a surge in demand that helped push PE prices upward. Additionally, the supply side faced constraints due to scheduled maintenance at several facilities, reducing availability and adding further momentum to the price increase. By mid-month, firm quotations from enterprises maintained the upward trend, although prices for high-voltage PE products experienced a significant decrease as supply increased.

However, as the month progressed, the market faced new dynamics. Some production units for high-voltage polyethylene resumed operations, which eased the supply constraints and helped moderate price increases for these products. Market demand showed signs of tapering, and resistance to high prices grew, leading to cautious buying patterns among downstream customers. By the end of the month, PE prices showed a slight downturn as suppliers offered discounts to stimulate purchases amid low enthusiasm in the downstream market.

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Looking ahead, the fourth quarter’s maintenance activities in PE plants appear minimal, suggesting that supply will remain steady. Additionally, new production capacity is anticipated to come online, which, combined with a seasonal decline in agricultural film demand in November, is expected to contribute to a generally weaker trend in PE prices.