Major Chinese producers’ polyolefin inventories witness dramatic drop w-on-w

China’s two major domestic producers’ combined PE and PP inventories have witnessed a sharp weekly drop, according to market sources.

Polyolefin inventories declined dramatically by 95,000 tons or around 16% from December 15 to December 22, reaching a total of 515,000 tons.

“This week witnessed a rapid destocking of petrochemicals, well beyond the usual levels observed in recent times. The markets have stabilized and experienced a recent upturn, fostering a more positive sentiment and increased transactions,” a source noted.

Market sources attributed the sharp drop in inventories to a surge in maintenance activities, particularly affecting the PP operating rates, and improved buying sentiment.