The slowdown in purchasing activity was particularly evident in the LLDPE sector, where transaction volumes weakened despite reduced allocations. Only 54.6% of available cargoes were sold, marking a 40.1% drop from the previous morning session.
Chinese officials are set to convene on 4-5 March 2025 in Beijing for the annual Two Sessions Meeting, where the economic framework for the year will be outlined. Industry analysts, as reported by Bloomberg, anticipate that the government will set a growth target of approximately 5%.
Similarly, international suppliers have attempted to push import offers higher in China, citing limited supply. However, acceptance has been weak due to the sharp rise in local availability following the commissioning of several new plants since November 2024.
Despite the Dalian Commodity Exchange’s relative strength, spot sellers kept offers stable-to-softer, citing buyer-side resistance toward firmer levels. Market participants expressed caution over the futures market’s upturn, citing concerns over its sustainability.
The Shenhua Auction Platform commenced the month’s trading with more competitive offers, diverging from the firmer trends observed on the Dalian Commodity Exchange. The producer’s strategy appeared aimed at sustaining purchasing momentum, particularly as allocations for both grades increased.