With the approaching of traditional peak season for agricultural film in northern China, some users showed mildly rising buying intention for feedstock due to slightly improved unfilled order quantities. As for LDPE, the main feedstock of agricultural film, its output increase attributed to the production resumption could basically deal with the following downstream stockpiling demand.
Source: OilChem
Domestic PE unit maintenance remained intensive in July, and LDPE output is on a steady uptrend in August on production resumption.
LDPE capacities involved in maintenance reached 2,525,000 tonnes/year and 1,115,000 t/y in July and August respectively. At present, the in-production LDPE capacities reach 1,715,000 t/y in China, and the capacities undertaken maintenance hit 550,000 t/y.
Source: OilChem
With regards to agricultural film and packaging film, the main downstream consumption fields of LDPE, greenhouses film operating rate inched up during the transitional period between off season and peak season while packaging film operating rate tended up on improved downstream trading sentiment.
Market insiders need to pay attention to the follow-up output increase because the LDPE industry will not undertake overhaul within a certain time.
Written by Ariel Guo, gq@oilchem.net
Edited by Navy Liu, liuchuanjun@mysteel.com