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PP and LLDPE futures for the January 2026 contracts on the Dalian Commodity Exchange traded slightly firmer in a range-bound pattern during the morning session, extending last Friday’s rebound into a second consecutive session.

Total domestic inventory rose sharply by 120,000 tons from last Friday, reaching 770,000 tons as of 1 December.

Local PP and PE offers held broadly steady at the start of the week, though some sellers indicated that modest price increases could follow if futures extended their morning strength. Despite this, sentiment remained subdued as the market sought clearer direction for the week ahead.

A local distributor reported continued pressure on margins, citing weak buying interest and little sign of year-end relief. “We see limited prospects for a meaningful rebound, and trading remains quiet. Clearing cargoes before year-end is proving increasingly difficult,” the source said.

A trader noted uneven customer activity, with some buyers delaying decisions while others requested prices without progressing to firm negotiations. The sharp inventory build over the weekend has become a focal point, raising questions about producer pressure as year-end approaches.

Market participants said they will closely watch inventory movements and upcoming producer pricing decisions. Developments related to methanol supply disruptions in Iran and shifts in shipping freight rates from China to ASEAN are also expected to influence sentiment and direction in the days ahead.

Written by: Kat Yun Yun

Edited by: Farid Muzaffar

Country
China