Responding to the stimulus, key PVC futures contracts for January 2025 delivery on the Dalian Commodity Exchange jumped CNY 140/ton by the closing on 25 September. However, the rise in futures did not translate into immediate confidence in the spot market.
Amid continued firming trends for key PP and LLDPE contracts on the Dalian Commodity Exchange, driven by the government's broad economic stimulus measures, Chinese bidders have shown increased interest in auctions for coal-based materials.
Industry sources indicate that the hike in export prices reflects the producer's lack of inventory pressure, bolstered by strong sales in the previous month. Despite the hike, falling ocean freight rates have helped stabilize import prices across key markets.
Traders have highlighted that the local market is unlikely to see relief in the near term, as supply constraints persist and alternative sources remain limited. This situation is expected to further strain local converters, who are already grappling with dwindling end-product demand.