SunSirs: Decline in Polyethylene Social Inventories Provides Price Support in China

As of July 10, 2026, sampled social warehouse inventories of polyethylene stood at 346,000 tonnes, a decrease of 19,900 tonnes (or 5.43%) from the previous period.

This 5.43% month-on-month decline in sampled social inventories signals a clear destocking trend, reflecting a marginal improvement in downstream demand and a slight easing of spot supply pressure, which provides support for LLDPE spot prices. On July 14, the benchmark polyethylene futures contract (2609) on the Dalian Commodity Exchange closed at 7,714 RMB/tonne, up 278 RMB/tonne from the previous trading day; the strong performance of futures prices has further bolstered expectations for spot prices, creating an overall favorable outlook for price trends.

LDPE falls under the polyethylene category; the sector-wide destocking has alleviated supply pressure, and the marginal improvement in supply-demand dynamics offers support for LDPE spot prices. Coupled with the generally strong performance of polyethylene futures, LDPE prices are expected to remain firm.

HDPE is a specific grade of polyethylene; it has benefited from the decline in social inventories, which has reduced spot supply pressure and raised expectations for improved downstream demand. These factors, combined with the strong performance of polyethylene futures, provide positive support for HDPE prices.

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