China Morning Snapshot – 20 November 2025

PP and LLDPE futures on the Dalian Commodity Exchange traded in a narrow range during the morning session before rebounding toward midday, with LLDPE showing a stronger recovery than PP.

Domestic inventories fell by 10,000 tons from the previous session, bringing total stockpiles to 690,000 tons as of 20 November.

In the physical market, local producers maintained largely stable offers, monitoring whether the futures rebound would hold. Trading remained cautious, with limited negotiation room as sellers aimed to clear inventories ahead of month-end.

A local distributor commented, “Producers indicated that if futures strengthen this afternoon, small price increases may be considered depending on market conditions. However, upward adjustments are likely to face resistance, as many buyers replenished over the past two days. Even with CNY 20–30/ton flexibility this morning, interest remained lukewarm, with most customers preferring to wait for clearer direction.”

On the supply side, Zhejiang Petrochemical’s new 300,000-ton/year LDPE/EVA unit under the Phase III project is preparing for trial production as early as next week. If start-up proceeds smoothly, commercial output could begin by early December, initially for LDPE grades, introducing additional caution into the near-term LDPE price outlook.

Overall, trading sentiment remains cautious amid stable spot offers, modest futures support, and new capacity developments. LLDPE continues to attract selective replenishment, while PP faces restrained activity as buyers await firmer signals.

Written by: Kat Yun Yun 

Edited by: Aiman Haikal