China’s polymer futures market showed a modestly bullish tone on Wednesday, with all major contracts ending the session higher. Market participants noted that while demand fundamentals remain soft, marginal restocking interest and stable cost signals provided some support to prices across polyethylene, polypropylene, PVC, and MEG.
Linear low-density polyethylene (LLDPE, l2601) futures opened at RMB 7,225/mt (USD 841/mt) and traded in a narrow range between RMB 7,270/mt (USD 846/mt) and RMB 7,204/mt (USD 838/mt). The contract settled at RMB 7,245/mt (USD 843/mt), up 0.29 percent or RMB 21/mt (USD 2.44/mt) from the previous session’s settlement. Traders observed that although end-user demand remains muted, improved short-term sentiment helped lift buying interest.
Polypropylene (PP, pp2601) futures also moved higher. The contract opened at RMB 6,939/mt (USD 808/mt), fluctuated between RMB 6,978/mt (USD 812/mt) and RMB 6,924/mt (USD 806/mt), and closed at RMB 6,961/mt (USD 810/mt). This represented an increase of 0.45 percent or RMB 31/mt (USD 3.61/mt) over Tuesday’s settlement at RMB 6,930/mt (USD 807/mt). Market participants remarked that gains in PP reflect cautious optimism, although the broader market continues to be weighed down by oversupply.
Polyvinyl chloride (PVC, v2601) futures recorded the strongest move of the day, opening at RMB 4,880/mt (USD 568/mt) and touching highs of RMB 4,928/mt (USD 574/mt) before closing at RMB 4,913/mt (USD 572/mt). The contract ended 0.88 percent higher, a gain of RMB 43/mt (USD 5/mt) from the previous settlement at RMB 4,870/mt (USD 567/mt). Market observers linked the increase to speculative interest and slight restocking activity in construction-linked demand ahead of the seasonal shift.
Monoethylene glycol (MEG, eg2601) followed with a modest rise. The contract opened at RMB 4,357/mt (USD 507/mt), moved between RMB 4,379/mt (USD 510/mt) and RMB 4,331/mt (USD 504/mt), and closed at RMB 4,355/mt (USD 507/mt). This represented a 0.25 percent increase, or RMB 11/mt (USD 1.28/mt), compared with Tuesday’s RMB 4,344/mt (USD 506/mt). Participants said the upside was supported by stable polyester sector inquiries, though demand fundamentals remain fragile.
Overall, the session marked a rare day of broad-based positivity for China’s polymer futures, though industry participants cautioned that the sustainability of gains remains uncertain without a stronger recovery in downstream demand. The coming weeks will be watched closely to see whether September’s seasonal trends can provide lasting support.
