Morning Briefing - 16 September 2026

A slowdown in futures trading on the Dalian Commodity Exchange has done little to dampen bullish sentiment in China’s domestic spot homo-PP and LLDPE film markets.

CommoPlast data showed that spot offers for both grades have surged beyond their March war-induced peaks to levels last seen in early October 2021. The rally has been underpinned by a confluence of bullish factors, including stable demand, constrained supply and mounting concerns over potential supply disruptions as conflicts in the Middle East intensify.

Market sources reported more active transactions for LLDPE film than for homo-PP across both domestic and export markets. Yet, despite the comparatively stronger trading momentum in LLDPE film, homo-PP continues to command a sizeable premium of CNY 375/ton over the former — highlighting the divergent pricing dynamics between the two products.

The Vietnamese LLDPE film market continued to see robust buying interest as buyers sought to cover immediate requirements amid severe shipment delays caused by heavy port congestion across the region.

While the import market remained dominated by Chinese cargoes and re-export parcels from China, a notable development emerged on the domestic front, where a large proportion of current offers are scheduled for delivery between late October and late November.

Market sources said the concentrated forward-selling efforts by local trading houses could potentially create another layer of supply tightness in the months ahead. With substantial October–November arrivals already committed in advance, the volume of ready-stock parcels available when these cargoes eventually land could remain limited, potentially sustaining upward pressure on prompt prices.