Chinese polymer futures closed in negative territory this week, with contracts for linear low-density polyethylene (LLDPE), polypropylene (PP), polyvinyl chloride (PVC), and monoethylene glycol (MEG) all posting declines as sluggish demand and persistent oversupply weighed on sentiment.
On the Dalian Commodity Exchange, LLDPE (l2601) futures opened at RMB 7,280 (USD 848/mt) and fluctuated between RMB 7,303 (USD 851/mt) and RMB 7,221 (USD 842/mt) before settling at RMB 7,270 (USD 847/mt). The contract fell by 0.64 percent, down RMB 47 (USD 5.48/mt) from the previous settlement of RMB 7,317 (USD 853/mt).
PP (pp2601) contracts opened at RMB 6,990 (USD 815/mt), touched a low of RMB 6,921 (USD 807/mt), and closed weaker at RMB 6,965 (USD 812/mt), slipping 0.39 percent or RMB 27 (USD 3.15/mt) from the prior level of RMB 6,992 (USD 815/mt).
PVC (v2601) futures also softened, opening at RMB 4,907 (USD 572/mt) and trading between RMB 4,911 (USD 572/mt) and RMB 4,860 (USD 566/mt) before closing at RMB 4,894 (USD 570/mt). Prices dropped 0.31 percent, or RMB 15 (USD 1.75/mt), compared with the previous settlement of RMB 4,909 (USD 572/mt).
MEG (eg2601) contracts mirrored the downtrend, starting at RMB 4,461 (USD 520/mt), moving between RMB 4,468 (USD 521/mt) and RMB 4,413 (USD 514/mt), and ending at RMB 4,427 (USD 516/mt). This marked a decline of 0.96 percent, down RMB 43 (USD 5.01/mt) from the prior close of RMB 4,470 (USD 521/mt).
Traders pointed to continued weak downstream demand, particularly from packaging, construction, and textiles, as a key driver of the declines. Ample domestic supply, combined with softer global sentiment, has kept prices under pressure even as market participants eye September for a potential seasonal uptick. Until then, sentiment remains fragile, with further volatility likely in response to crude oil price swings and policy developments.
