HDPE pipe breeds hope in the bear market

Since the fourth quarter of 2018, HDPE pipes have experienced three consecutive quarters of decline. For instance, HDPE pipe 100 price dropped from around 12,000yuan/mt in October 2018 to the low of 8,500yuan/mt in June 2019. In the middle and early July 2019, HDPE pipe had rebounded for a while to above 9,000yuan/mt, but it fell again not long after, almost straight to the low of 8,500yuan/mt in June.

Such a long-term decline has been rarely seen in HDPE pipe market history. The main reason is the conversion of supply and demand. When HDPE pipe prices were staying firmly high, domestic environmental protection projects, infrastructure projects, real estate and other industries showed a bursting demand for the raw materials, against the restricted capacity in China. Market supply was tight and thus kept prices high. Later, after the major petrochemical plants in China gradually increased the production of HDPE pipes, the price was difficult to maintain.