China Morning Snapshot – 28 November 2025

The January 2026 contracts for PP and LLDPE on the Dalian Commodity Exchange rallied on the final trading day of the week, ending a five-session losing streak. The rebound offered temporary support to physical markets ahead of the weekend and month-end close.

Domestic inventory levels remained unchanged from the previous session, totaling 650,000 tons as of 28 November 2025.

The rebound in futures prompted local producers to maintain or slightly raise offers, as market participants attributed the gains to a technical correction after a prolonged downtrend, which revived selective buying.

"Trading activity for both PP and PE has picked up today," a local seller said. "Buyers, particularly those who had been holding back, are replenishing inventories on an immediate-needs basis."

This restocking has temporarily alleviated excess supply and provided some support to producer offers. However, with underlying market fundamentals still weak, the gains may be short-lived. Year-to-date, Chinese homo-PP prices have declined 15.7%, a sharper fall than the 5.7% drop recorded over the same period in 2022, during the last down-cycle.

Many participants remain cautious, anticipating further downside if conditions persist. Prices could approach levels last seen in 2020, now only CNY 75/ton away, highlighting the ongoing challenge for producers in sustaining firm offers amid persistent market pressure.

Written by: Kat Yun Yun

Edited by: Farid Muzaffar