Major Chinese producers’ polyolefin inventories near 1mn tons post-CNY

According to market sources, the two major Chinese polyolefin producers have experienced a sharp increase in their PE and PP inventories compared to the pre-Chinese New Year holiday level. The last inventory assessment before the holidays was on February 7, which was at 555,000 tons. The total polyolefin inventories opened the post-holiday week with 990,000 tons on February 18.

From February 18 to 23, the total polyolefin inventories posted a decrease of 35,000 tons, currently standing at 955,000 tons. This indicated a decline of 3.5% within the specified period.

A market player commented by pointing to the imbalance between supply and demand: “Most petrochemical companies maintained regular operations during the CNY holidays, while downstream players were away from markets. Besides, most downstream factories are yet to resume their operations, as converters are expected to return to their desks only after the Lantern Festival. The supply-demand situation is expected to return to normal by next week.”