Chinese bidders demonstrated strong purchasing interest during the first auction session of the week, acquiring additional coal-based PP parcels through the Shenhua Auction Platform, despite bearish signals from the Dalian Commodity Exchange.
Sellers' confidence has been buoyed by reduced sales pressure, as many Chinese PET producers lowered operating rates in response to the seasonal winter slowdown. Weeks of price declines also encouraged some buyers to return to the market.
Key domestic producers, Sinopec and CNPC, reported a further reduction of 15,000 tons in their combined PP and PE inventories. Since the start of November, both producers have drawn down approximately 14% of their inventories, effectively mitigating potential supply pressure in the local market.
The Shenhua auction platform concluded today's session on a strong note, supported by improved trading sentiment in the futures market on the Dalian Commodity Exchange, especially for LLDPE. Despite price hikes of CNY 140/ton, buying activity remained robust