Consumption Under Pressure, PE Packaging Film Products Run Weakly

Introduction:Capacity is gradually increasing, and competition is becoming increasingly intense, leading to a dispersion of orders. The number of orders within enterprises has decreased year-on-year, but the overall order volume of domestic companies has not changed much compared to last year. The uncertainty of tariffs has increased, limiting exports, and coupled with the fact that foreign demand has already been stocked up, external demand has weakened. In terms of both domestic and foreign markets, changes during the execution order period have been mainly minimal, and overall market consumption stimulation is inadequate, resulting in insufficient operational momentum.

1. The performance of subdivisions was basically consistent, with a month-on-month decline in operation.

The peak inventory for express packaging bags, logistics stretch film, and other materials has passed, primarily relying on supplementary orders for scattered short-term contracts. The downstream has mainly consumed prior inventory, leading to a decline in order support for manufacturing companies. There is no standout performance in food composite flexible packaging, cling film, and substrate film, lacking consumption stimulation. The continuity of orders is relatively strong, but the overall order volume is limited. Industrial packaging, such as shrink film, heavy packaging, and cold stretch film, is primarily driven by essential needs, while export demand has weakened.

The average operating rate of companies producing express packaging bags, logistics stretch films, and other related products is around 48%. The operating rate for PE packaging films in food composite flexible packaging, preservation films, and substrate films is about 53%. For industrial packaging, such as shrink films, heavy packaging, and cold stretch films, companies are focusing on executing custom orders, resulting in an average operating rate of around 40%, with a noticeable decline. The demand for other daily chemical packaging films is relatively flat, with an average operating rate of about 52%. 。

Bearish sentiment is growing, raw material inventory is mostly replenished as needed.

PE A survey of packaging film companies regarding their outlook on raw material prices for the period of December 5 to December 11, 2025, shows that 48.15% expect stability, 22.22% are bullish, and 29.63% are bearish. Among these, the proportion expecting stability decreased by 3.71%, the bullish proportion remained unchanged, and the bearish proportion increased by 3.71% compared to the previous period.

The average inventory days for sample enterprises is around 8 days. Large enterprises can maintain raw material inventory days of about 5 to 10 days, while small and medium-sized enterprises maintain raw material inventory days of about 3 to 6 days. Although raw material prices have decreased somewhat, the demand for packaging remains weak, and market purchasing sentiment is poor, leading to a primary focus on reducing inventory for raw materials. The raw material inventory levels of PE packaging film enterprises have decreased year-on-year, with limited demand support. Enterprises are purchasing raw materials based on orders while considering storage costs and the current low-profit production situation, resulting in low safety stock levels.

Overall, downstream orders are limited, and execution orders are being delivered gradually. The number of days enterprises can produce orders has decreased, weakening the support for production. Raw material procurement has slowed down, and enterprises mostly replenish stocks based on orders. The enthusiasm for restocking is generally low, and inventory levels are relatively low. The PE packaging film market is running weak overall.