Major producers’ polyolefin inventories fall below 1 million tons in China

After reaching record-high levels by mid-February, traders reported that China’s two major local producers’ combined polyolefin inventory levels have indicated drops on the week and moved below 1 million tons.

Easing inventory pressure was attributed to the improving buying sentiment amid increasing production rates at downstream factories along with firmer Dalian futures driven by stronger crude oil futures. Although end-users are still reluctant to make purchases, traders are active in terms of transactions.

Meanwhile, some traders reported that homo-PP raffia inventories are slightly tighter as PP producers shifted their focus on other grades.

In China, both local and import polyolefin markets have displayed a rebound this week after reaching record-low levels by early April. Apart from easing inventory pressure, ending lockdowns and China’s rebounding March PMI reading have also supported the sentiment.