Inventory levels at China’s two leading polyolefin producers continued their upward trajectory in the week ending July 18, climbing by approximately 45,000 tonnes to reach 770,000 tonnes, an increase of over 6% from the prior week, according to market sources.
This accumulation marks the latest chapter in a persistent upward trend, as weak demand from downstream sectors, affected by seasonal softness and cautious restocking behavior—has intensified pressure on participants across the supply chain. Converters and end-users have largely refrained from significant purchasing, citing ample inventories and subdued demand activity .
The growing inventory signals a troubling imbalance: supply continues to outpace consumption, highlighting ongoing vulnerabilities in China’s polymer demand recovery. Unless downstream purchasing activity improves, surplus will likely persist, potentially weighing on pricing and margins in the weeks ahead.
