China Morning Snapshot – 7 November 2025

PP and LLDPE futures on the Dalian Commodity Exchange traded in a tight range during the morning session on Friday, reflecting fragile sentiment and limited momentum across China’s polyolefins market.

Domestic polyolefin inventories declined by around 25,000 tons from Thursday to 665,000 tons as of 7 November, extending the gradual drawdown seen over the past two sessions.

Despite the lower stock levels, overall sentiment remained subdued, with buyers largely refraining from restocking ahead of the weekend.

Market participants said converters who had secured cargoes on Thursday mostly adopted a wait-and-see stance, observing whether the recent stabilisation in futures could sustain into next week.

A local distributor remarked, “We’re seeing mixed attitudes among sellers. Some producers are withholding offers in anticipation of firmer levels next week, while others continue to offer small discounts to move volumes. Although PP offers remained stable this morning, sellers are open to negotiation. Confidence is still fragile, and it’s too early to say whether prices have found a clear bottom.”

Persistent uncertainty in downstream demand and cautious trading behaviour suggest sentiment will likely stay defensive in the near term, with participants watching next week’s futures movement and energy benchmarks for clearer direction.

Written: Kat Yun Yun
Edited: Aiman Haikal