Sep 06, 2023
In early March, imported PE market had been supported by the strong RMB futures-spot market and appreciated RMB. However, from March to May, RMB market sentiment was weak, resulting in noticeable pressure on the imported PE market. In addition, suppliers published their new offers at lower price, leading to overall price declines as traders faced cost pressures. The downward trend became more pronounced in May, as prices fell below the levels at the beginning of the year. Factors such as costs, fundamentals, and market sentiment all contributed to a comprehensive downward trend.
In the first half of Jun, imported PE market edged up as RMB futures-spot market rose up. The market sentiment had been at a low point after several months of continuous decline, leading to a minor rebound in imported PE prices. However, in mid-June, RMB started to depreciate continuously, transaction for high-price goods was poor. Most traders offered lower to balance the price spread between RMB market and CFR China market and make transactions. However, downstream demand remained weak, resulting in a strong wait-and-see stance.