Major Chinese producers’ polyolefin inventories continue declining w-o-w

According to market resources, the total inventories of China’s two major PP and PE producers recorded a significant decline on a weekly basis.

Total polyolefin inventories fell by 90,000 tons from a week earlier to stand at 725,000 tons, indicating an 11% drop from October 18 to October 25. However, they still stood 45,000 tons higher compared to the same period of last year.

“Producers continue to keep operating rates at reduced levels to manage supply pressure, but downstream demand remains weak, with minimal replenishment activity. The supply-demand situation is still imbalanced. Although we observe a short-term rebound in prices, the long-term outlook stays bearish,” commented a market player.