Chinese polymer futures closed Wednesday on a mixed note, with three major contracts slipping while monoethylene glycol (MEG) managed to post modest gains. Market sentiment remained cautious as traders weighed weak downstream demand against ongoing supply adjustments.
Linear low-density polyethylene (LLDPE, l2601) contracts opened at RMB 7,241/mt (USD 843/mt) and fluctuated between RMB 7,243/mt (USD 843/mt) and RMB 7,206/mt (USD 839/mt) before closing at RMB 7,225/mt (USD 841/mt). This marked a decline of 0.51 percent, or RMB 37/mt (USD 4.31/mt), compared with the previous settlement of RMB 7,262/mt (USD 845/mt). Market participants noted that sentiment in the LLDPE complex remains weak, with sluggish offtake from packaging and film sectors continuing to weigh on activity.
Polypropylene (PP, pp2601) also retreated. Contracts opened at RMB 6,940/mt (USD 808/mt), moved within a narrow band of RMB 6,948/mt (USD 809/mt) to RMB 6,915/mt (USD 805/mt), and settled at RMB 6,939/mt (USD 808/mt). Prices fell 0.33 percent, or RMB 23/mt (USD 2.68/mt), from the previous session’s RMB 6,962/mt (USD 810/mt). Traders reported that persistent oversupply and muted demand from automotive and consumer goods converters are keeping the market under pressure.
The PVC (v2601) contract followed a similar path, opening at RMB 4,874/mt (USD 567/mt) and trading between RMB 4,893/mt (USD 569/mt) and RMB 4,846/mt (USD 564/mt) before closing slightly lower at RMB 4,883/mt (USD 568/mt). This represented a decline of 0.39 percent, or RMB 19/mt (USD 2.21/mt), against Tuesday’s RMB 4,902/mt (USD 570/mt). Participants said downstream construction demand remains inconsistent, contributing to overall softness in PVC futures.
By contrast, MEG (eg2601) bucked the downward trend. The contract opened at RMB 4,329/mt (USD 504/mt), traded between RMB 4,372/mt (USD 509/mt) and RMB 4,322/mt (USD 503/mt), and closed at RMB 4,357/mt (USD 507/mt). This represented a slight increase of 0.28 percent, or RMB 12/mt (USD 1.40/mt), compared with the previous settlement at RMB 4,345/mt (USD 506/mt). Market participants suggested that expectations of tighter availability, along with marginal restocking interest from polyester producers, offered short-term support.
Overall, Chinese polymer futures markets remain subdued, with traders indicating that further clarity on September demand will be crucial in determining whether current weakness in LLDPE, PP, and PVC can stabilize, or whether MEG’s modest gains will prove short-lived.
