LDPE Prices in China Saw a Slight Downward Trend in January 2024

The LDPE prices in China saw a month-over-month dip of approximately 0.19% from December 2023 to January 2024 as per the reported analysis by Procurement Resource. The fluctuations in the LDPE market were influenced by a variety of factors, including inventory build-up by petrochemical enterprises post-New Year's Day, contributing to supply-side pressure that led to a subdued and narrow downward trend in PE prices. However, as the month progressed, the futures market gained momentum, providing a boost to LDPE spot prices.

Several positive developments contributed to a slight upward trend in the LDPE market. These included a recovery in crude oil prices, anticipation of domestic interest rate cuts, and the upcoming Spring Festival, which spurred market demand for restocking. Despite the early month's decline, LDPE futures displayed resilience, signaling favorable conditions for the spot market and providing a optimistic outlook for February 2024.

Despite these shifts, the overall supply pressure on PE remained consistent. As the Spring Festival drew closer, a gradual reduction in demand was observed due to downstream factories beginning their holiday period, leading to expectations of a narrow operational adjustment in the PE market ahead of the festival, with limited potential for significant upward movement.

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According to Procurement Resource, LDPE prices in China slightly dipped in January 2024 due to post-New Year inventory buildup and supply pressure, but recovered as the month progressed, buoyed by positive factors like crude oil prices, rate cut expectations, and pre-Spring Festival restocking demand. Despite this, supply pressure and reduced demand before the festival suggested a narrow market adjustment.