China Polyolefin Inventories Drop Below 800,000 Tons Amid Supply Shift

China’s major producers have reported a decline in polyolefin inventories, with total stock levels falling below the 800,000-ton mark.

Combined inventories of polypropylene (PP) and polyethylene (PE) decreased by 40,000 tons to 770,000 tons as of March 27, reflecting a 5% drop compared to the previous week.

Buyers Shift to Domestic Supply

Tight import availability and ongoing shipping risks have pushed buyers to rely more on domestic material. At the same time, resistance to higher international prices has further supported this shift toward local supply.

Demand from some downstream sectors has shown improvement, attracting buying interest. However, overall transaction volumes remain limited and largely need-based.

Demand Softens After Early Week Activity

A slight correction in prices at the start of the week encouraged some restocking activity. However, demand weakened again toward the weekend as rising costs continued to pressure buyers.

Market Outlook

While lower inventory levels indicate tightening supply, high costs and cautious buying behavior may continue to limit trading activity in the near term.

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