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Polyolefin futures on the Dalian Commodity Exchange traded within a narrow band on Wednesday, with mild intraday gains failing to lift market confidence. Overall sentiment remained cautious as buyers continued to adopt a conservative procurement approach.

Domestic inventories edged down by 10,000 tons from the previous session to approximately 700,000 tons as of 19 November. 

However, the stock reduction did little to improve market sentiment, with sellers continuing to adjust prices—particularly in PP—to encourage buying interest. Trading remained muted as most downstream processors continued purchasing only against immediate needs or stayed on the sidelines. 

“There has been little shift from yesterday. Futures are range-bound, and few buyers are willing to move without stronger signs of upward direction,” a trader said, noting persistent scepticism over short-term prospects.

Further pressure may emerge from new supply additions, including BASF’s 500,000 tons/year HDPE/LLDPE swing plant in Zhanjiang, scheduled for commissioning by year-end. The upcoming start-up adds another layer of uncertainty to an already supply-heavy market, reinforcing expectations of a subdued near-term outlook.

Written by: Kat Yun Yun

Edited by: Aiman Haikal

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China