China’s Major Polyolefin Producers Report Sharp Inventory Decline

Inventory levels held by China’s two largest polyolefin producers declined noticeably during the past week, reflecting tighter product availability in the domestic market.

Market sources indicated that combined polypropylene (PP) and polyethylene (PE) inventories stood at approximately 740,000 tons as of June 5, representing a reduction of 70,000 tons compared with the previous week. This translates to a weekly decline of nearly 9%.

Despite the lower stock levels, market participants noted that the reduction was primarily driven by ongoing maintenance shutdowns at several production facilities, particularly in the PP sector, rather than a significant improvement in downstream demand.

Earlier strength in futures markets encouraged some buying activity; however, the momentum was short-lived. Purchasing interest remained limited as seasonal weakness continues to affect major end-use industries.

Market players added that while inventories have tightened compared with recent weeks, overall demand conditions remain cautious, with buyers largely continuing to purchase only according to immediate production requirements.

Market Snapshot

PP & PE Inventories (June 5): 740,000 tons

Weekly Change: Down 70,000 tons

Inventory Reduction: Nearly 9% Week-on-Week

Key Driver: Maintenance shutdowns and reduced production availability

Demand Trend: Stable to weak, with limited buying interest

The decline in inventories highlights ongoing supply-side constraints, although subdued downstream demand continues to limit broader market momentum.

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