China Morning Snapshot – 05 December 2025

PP and LLDPE futures for the January 2026 contract on the Dalian Commodity Exchange weakened further on Friday, with LLDPE extending losses to levels not seen since 2020. The retreat added pressure on the domestic spot market as participants headed into the weekend.

China’s domestic inventory declined by 15,000 tons from the previous day, reaching 670,000 tons as of 5 December 2025.

Buying activity remained muted to end the week despite a moderate drawdown in inventories, as many converters and traders deferred purchases until early next week. Market participants noted that LLDPE recorded a sharper decline than PP, reflecting persistently weak near-term demand signals and steady import arrivals that continue to cap any upward price momentum.

A local distributor said buyers were reluctant to re-enter the market. “Most are waiting for clearer direction next week. We’re not seeing an immediate rebound, and sellers are adjusting offers cautiously,” the distributor noted.

Export sentiment also softened. Chinese homo-PP yarn cargoes saw marginally lower offers to regional buyers, though interest stayed limited. Traders said elevated shipping costs and uncompetitive pricing continue to weigh on regional uptake, leaving both the domestic and export segments under mild pressure ahead of the weekend.

The market closed the week on a cautious, range-bound note, with weaker futures, selective procurement, and subdued export activity keeping spot levels under pressure. Any restocking or firming of offers will depend on signs of stabilisation in the coming week.

Written by: Kat Yun Yun

Edited by: Aiman Haikal