The correction marks one of the steepest month-on-month moves since 2023, driven less by an easing of Saudi supply constraints than by a convergence of bearish demand and competitive pressures across the LPG complex.
A sudden weekend reversal in geopolitical ceasefire optimism triggered a crude oil rebound on Monday, immediately firming Dalian paper markets and sparking a massive replenishment wave across Shenhua's physical auction as buyers rushed to lock in competitive baselines ahead of domestic spot hikes.
The domestic major producer raised its LLDPE prices slightly to halt a three-month decline. However, it enacted sharp, triple-digit cuts across its PP and HDPE grades due to weak demand and a softening trend in the import market.