China Morning Snapshot – 10 December 2025

PP and LLDPE futures for the January 2026 contract on the Dalian Commodity Exchange extended their declines during Wednesday’s morning session, prompting additional discounts across the domestic polyolefin market.

Total domestic inventory declined by 5,000 tons from Tuesday, registering 690,000 tons as of 10 December 2025, though the modest draw offered little relief to the broader market. 

Futures weakness continued to dominate sentiment, leaving buying interest subdued and trading activity slow and selective.

Need-based procurement persisted at discounted levels, but the volume of these deals was insufficient to steady spot values. “Deals are happening every day at lower prices for both PP and PE, but they’re not enough to balance the pressure. The market still feels heavy, and further declines seem likely,” a local seller said.

Forward sales for January delivery remained difficult, with many buyers holding back in anticipation of further softness and awaiting clearer direction from futures. At the same time, suppliers continued to prioritise clearing December allocations, reinforcing the defensive tone across both PP and LLDPE markets.

With futures under pressure, cautious procurement, and limited visibility ahead, sentiment remains downbeat. Market participants see little sign of a near-term turnaround, and prices are expected to stay vulnerable unless a stronger floor emerges in the coming sessions.

Written by: Kat Yun Yun

Edited by: Aiman Haikal