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The demand for raw materials has some support, and the price of agricultural film is mainly narrow and strong, with consolidation being the main focus

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In August and July, the market continued to rise. The supply of LDPE film products was tight, and the market quotation remained high. At this time, the agricultural film transition season entered, and the downstream operating load gradually increased. Enterprise orders accumulated, and after the market continued to rise, enterprises mostly digested the accumulated inventory in the early stage. The agricultural film price remained stable. As the orders of agricultural film enterprises gradually accumulated and the load of large-scale enterprises increased, the early inventory support was insufficient, and the raw materials continued to rise, As a result, the profits of agricultural film gradually narrowed, and the prices of agricultural film subsequently rose. As of August 31, the mainstream price of Shandong's dual prevention film was 9800-10300 yuan/ton, an increase of 200 yuan/ton from the low end of last month, and 300 yuan/ton from the high end.

Towards the end of the month, the demand for agricultural film is gradually entering the peak season, and the market mentality is improving. However, with the international economic situation still changing, the overall market mentality has been boosted. As of the end of August, taking LDPE 2426H as an example, the film material was 50 yuan/ton higher than the same period last year, and LLDPE was 450 yuan/ton higher than the same period last year. However, the price of agricultural film did not increase, and the price of agricultural film decreased by 217 yuan/ton compared to the same period last year. According to the author, the low-cost raw material reserve inventory of large-scale enterprises has not been fully digested, and enterprises have promoted transactions to ensure production output and reduce production costs, resulting in weak bargaining power of small factories.

From a supply perspective, in September, the major overhauls of Baolaili Anderbasser, Tarim Petrochemical, and Shenhua Yulin units will be completed one after another in mid to late September. Except for some temporary maintenance units, only Sichuan Petrochemical's full density and low-pressure units will be newly added for maintenance, and domestic production will be significantly increased. As the demand for agricultural film improves in September, enterprise orders will gradually accumulate, and the low load of construction will gradually shift to the stage of medium to high load. The enthusiasm of dealers to purchase goods has increased, and terminal demand will gradually follow up, providing some support for raw material demand. The narrow range of agricultural film prices is mainly consolidated, but in the short term, downstream agricultural film construction will warm up and continue to rise, still weaker than the same period last year.

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