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PP and LLDPE 2605 contracts on the Dalian Commodity Exchange surged in the morning session, extending gains from last week before easing slightly toward the end of the session.

Supported by firmer futures, most local sellers raised offers in the morning, though concluded deals remained limited as converters largely stayed on the sidelines, adopting a cautious, wait-and-see approach. Traders were more active, seeking cargoes for restocking, particularly to meet export commitments.

Adding to the upward bias, oil markets opened the week on a bullish note, with Brent crude at $104 a barrel, reinforcing expectations that the market is unlikely to soften in the near term. At the start of the week, CNPC and Sinopec reported total domestic inventories rising by 40,000 tons day-on-day to 860,000 tons, following three sessions of accumulation observed in the previous week, while market interest in sourcing cargoes continues to wane.

“We are seeing most players targeting the export market,” a local participant said. “Some traders who had previously forward-sold cargoes with futures arbitrage positions are now securing supply at workable price levels. With the sharp rise in futures and continued overseas enquiries, we expect producers to lift offers further.”

Written by: Kat Yun Yun

Edited by: Farid Muzaffar

Country
China