China Morning Snapshot – 04 December 2025

PP and LLDPE futures for the January 2026 contract on the Dalian Commodity Exchange continued to slide during Thursday morning session, exerting further pressure on domestic market sentiment.

China’s domestic inventory declined by 15,000 tons from the previous day, reaching 685,000 tons as of 4 December 2025. 

Despite tighter stock levels, buying interest remained subdued, with sellers offering flexible pricing yet struggling to secure significant volumes.

Market participants highlighted cautious sentiment as a key factor. “Prices have yet to stabilise, and the market needs time to regain confidence,” a local distributor said. “Under current conditions, purchases are mostly limited to immediate requirements, constraining upward price momentum.” Similar reports emerged from multiple regions, with overall trade described as slow and selective.

Homo-PP yarn is now trading just CNY 125 ($18)/ton above the five-year low, approaching levels last seen during the pandemic. Analysts warn that if demand remains soft, prices could test historical lows in the near term.

On the export front, Chinese homo-PP yarn cargoes faced continued downward pressure. Previous offers to Indonesia at $820–830/ton CIF were reduced by $20/ton to $800–810/ton CIF, but demand remained sluggish. Traders noted that less competitive Chinese shipping rates are limiting regional buying interest, with some expecting import prices to fall below $800/ton. Weak export activity further compounds domestic price softness.

Overall, the domestic market remains in a cautious, defensive stance. Futures weakness, muted downstream orders, and slow export uptake are keeping both spot and futures prices under pressure, with restocking expected only if sentiment stabilises above recent lows.

Written by: Kat Yun Yun

Edited by: Farid Muzaffar