On July 24, most energy and chemical contracts on China's futures market advanced, with polyolefin futures rebounding across the board. On the Dalian Commodity Exchange, the lead LLDPE (polyethylene) futures contract closed at RMB 7,990/ton, up 1.28% (+101), touching a session high of 8,092 and a low of 7,897. The lead polypropylene (PP) contract settled at RMB 8,470/ton, up 0.94% (+79), with an intraday peak of 8,560. The firmer futures lent some support to spot market sentiment.
PE market: Spot prices consolidated in line with futures. Mainstream LLDPE offers in East China hovered around RMB 8,350-8,400/ton, with some petrochemical producers holding ex-works prices steady. Downstream buyers focused on need-based restocking, keeping purchasing enthusiasm moderate.
PP market: Spot prices were broadly stable with minor moves. Traders' sentiment improved slightly on the futures rebound, but downstream factory demand stayed limited, with most buyers purchasing on an as-needed basis and deals negotiated case by case.
PVC market: Overall trading remained weak. Mainstream carbide-process deals were under pressure, and traders offered flexible discounts based on their own inventory and cost positions. The JLC PVC price index stood near 4,600.
Cost side: In crude oil, WTI traded around USD 78.95/barrel and Brent around USD 84.23/barrel. Range-bound oil prices offered limited support to plastic feedstock costs.
Outlook: Analysts note that PP's capacity-expansion cycle is not yet over, with new units coming online and market supply staying ample, making peak-season demand harder to realize. Polyolefin futures may stay firm but volatile in the near term, while spot buyers remain cautious about chasing gains, pointing to narrow-range consolidation ahead.
