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Futures on the Dalian Commodity Exchange remained bearish in the morning session, with PP extending its recent losses and reinforcing a subdued tone across the domestic market.

Domestic inventories slipped by 5,000 tons to around 685,000 tons as of 21 November, although the drawdown did little to improve trading sentiment.

In the physical market, local PP suppliers widened discounts to encourage buying, while LLDPE offers were largely steady but open to negotiation. Sellers showed greater willingness to trim prices for firm bids as persistent demand softness and light purchasing volumes prompted efforts to encourage interests.

Nonetheless, buying interest remained thin, with most participants restricting replenishment to immediate needs. “Enquiries are extremely limited today, and most buyers are replenishing in small volumes due to low confidence and uncertain direction,” a trader said.

Market participants noted that continued weakness in futures is weighing on expectations, reinforcing a cautious approach among both sellers and buyers. With no clear price floor emerging, sentiment remains defensive as the market looks to next week for clearer signals.

Written by: Kat Yun Yun

Edited by: Aiman Haikal

Country
China