Core Insights - The overall operating rate of China's polyethylene (PE) industry in August 2025 is estimated at 80.44%, showing an increase from July [3][5] - The operating rates for different PE categories are as follows: LDPE increased by 1.98 percentage points to 68.77%, LLDPE slightly increased by 0.04 percentage points to 81.16%, and HDPE saw a significant rise of 8.65 percentage points to 82.65% [5][6] LDPE Analysis - LDPE production experienced a slight increase, with an estimated growth of 2.96% month-on-month [6] - The restart of Zhejiang Petrochemical's high-pressure unit after maintenance helped offset the production gap caused by planned maintenance at Shenhua Xinjiang [6] - Notable increases in LDPE varieties include a rise of 15,600 tons in film materials, while coating and injection materials saw declines of 13,000 tons and 4,200 tons, respectively [6] LLDPE Analysis - The LLDPE market in August displayed a trend of "stable total volume, structural changes" [6] - Overall production saw a minor increase of 0.04%, but significant internal adjustments occurred [6] - LLDPE film (MI=2, excluding opening agents) production increased by 56,800 tons, while other LLDPE varieties experienced reductions, including a decrease of 33,400 tons in LLDPE (MI=2, including opening agents) [6] HDPE Analysis - HDPE production surged by 11.68% month-on-month, marking the largest single-month increase of the year [7] - This growth was primarily driven by the restart of the dual lines at Lianyungang Petrochemical and the commissioning of a new facility at Jilin Petrochemical [7] - The supply of HDPE film saw a notable increase of approximately 103,700 tons, while other categories like HDPE pipe and various other products also experienced growth [7] Market Outlook - The supply pattern for PE in August is characterized by "HDPE increase, LDPE stability, and LLDPE flatness" [8] - It is anticipated that the HDPE supply will face pressure in a relaxed supply environment, while LDPE prices are expected to maintain a high level [8]