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PP and LLDPE futures for the January 2026 contract on the Dalian Commodity Exchange extended their decline through the morning session, adding further pressure on sentiment across the domestic polyolefin market.

Total domestic inventories rose by 5,000 tons from the previous session, reaching 695,000 tons as of 9 December 2025. Despite the modest increase, the additional stock reinforced the downbeat tone across the market.

Sellers widened discounts in an effort to stimulate activity, yet buying interest remained selective. Market participants noted that most purchasers are still focused on gauging a price floor, with limited indications of stabilization in the near term.

“Some deals are being concluded at discounted levels, but buyers are minimizing purchases, uncertain about when prices will bottom out,” a local seller said. “Current need-based purchases are insufficient to support any meaningful recovery.”

Comparisons to historical lows continue to shape market sentiment. The lower end of homo-PP yarn offers is now approximately CNY 250/ton above the pandemic-era trough of CNY 5,900/ton, while LLDPE film has extended its downtrend for more than five months. Buyers reported that the persistent softness across both segments has left little confidence for larger or speculative procurement.

With the year-end approaching, some sellers are reportedly offloading higher-cost inventories below cost, further weighing on overall market confidence. Participants noted that while PP demand remains slightly firmer than LLDPE on a needs-based basis, both segments are constrained by cautious buyer behaviour and soft downstream orders.

The market continues to operate in a defensive stance, with futures softness, selective domestic procurement, and limited export interest keeping spot levels under pressure. Any meaningful restocking or upward price movement will depend on clearer signs of stabilization, stronger end-user demand, or supportive import arrivals in the coming sessions.

Written by: Kat Yun Yun 

Edited by: Farid Muzaffar

Country
China