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PP and LLDPE futures for January 2026 contract on the Dalian Commodity Exchange opened lower, with both contracts slipping to new recent lows before posting only a mild rebound during the morning session.

Domestic inventories fell by 30,000 tons from the previous session to 655,000 tons as of 26 November 2025.

In the physical market, PP offers were broadly steady, while LLDPE saw modest downward adjustments in line with futures-led sentiment. Despite unchanged indications, traders said PP remained negotiable as confidence stayed weak.

“As month-end approaches, producers have mostly exhausted their allocations to us, so they are trying to hold offers steady,” a distributor told CommoPlast. “But we still don’t see any firm signals or supportive factors that could stabilise prices.”

Market participants remain cautious heading into the year-end, prioritising margin protection and avoiding inventory exposure ahead of financial closing. The strengthening Renminbi has added additional pressure, particularly for PP exporters facing diminishing workable opportunities.

Several traders also reported delays in export shipments from major Chinese PP producers, with one source suggesting the postponements may be linked to earlier overselling. There is currently no clear indication of how long the delays may persist, though some market discussions suggest disruptions could extend for several weeks. The upcoming overseas holiday period adds another layer of complexity, and participants see little sign of a near-term demand recovery.

Written by: Kat Yun Yun 

Edited by: Farid Muzaffar

Country
China