On Tuesday, Chinese commodity futures for key polymers delivered a mixed performance, reflecting a tug-of-war between demand uncertainty and cost-side pressures in the petrochemicals sector.
Linear low-density polyethylene (LLDPE) futures on the Dalian Commodity Exchange began the session at RMB 7,252/mt (USD 844) and fluctuated within a narrow band before closing slightly lower at RMB 7,247/mt (USD 843). This represented a modest day-on-day decline of 0.19% or RMB 14/mt (USD 1.63), as buyers remained hesitant to build fresh positions amid lacklustre downstream activity.
Polypropylene (PP) futures saw a steadier tone. Contracts opened at RMB 6,943/mt (USD 808) and touched a high of RMB 6,985/mt (USD 813) before settling at RMB 6,954/mt (USD 809). This was effectively unchanged from the previous settlement, with prices edging up by just RMB 1/mt (USD 0.12), underscoring balanced market sentiment.
Polyvinyl chloride (PVC) futures weakened slightly. Prices opened at RMB 4,885/mt (USD 569) and tested a high of RMB 4,941/mt (USD 575) before closing at RMB 4,878/mt (USD 568), down 0.29% or RMB 14/mt (USD 1.63) from Monday. Market participants pointed to subdued construction-related demand, traditionally a key driver for PVC, as a drag on sentiment.
Monoethylene glycol (MEG) futures registered the steepest decline of the day. Contracts opened at RMB 4,345/mt (USD 506) but softened throughout the session to close at RMB 4,331/mt (USD 504). The fall of 1.16% or RMB 51/mt (USD 5.94) from the prior settlement reflected ongoing weakness in the polyester chain, with buyers cautious amid profitability concerns in China’s textile and fiber sector.
The contrasting moves across the board highlight the uneven dynamics shaping China’s polymer futures market. While PP showed resilience on balanced fundamentals, LLDPE and PVC slipped under seasonal demand pressure, and MEG remained firmly in negative territory as downstream margins continued to erode. Traders noted that sentiment remains fragile, with global crude oil volatility and economic headwinds likely to set the tone for near-term price direction.
