China PP Inventory Grew WOW Due to Holiday Accumulation
1. China Total PP Inventory up
According to SCI, China’s PP inventory on October 10, 2025 grew by 34.21% from September 26. Therein, the PP inventory at major PP producers and main ports increased, while that at sample traders dropped.
Remarks: PP inventory involves PP inventory at major producers (including crude oil-based and coal-based sample producers), sample ports and sample traders.
2. China PP Inventory at Major Producers up
On October 10, 2025, the PP producer inventory rose by 50.60% from September 26. Despite relatively solid pre-holiday pre-sales by major PP producers, the National Day holiday led to suspended sales at some producers, resulting in inventory accumulation. However, the post-holiday inventory level, while significantly higher than the pre-holiday one, remains lower than that in the same period of last year, indicating manageable overall pressure. In the two days following the holiday, traders and downstream processors gradually replenished the inventory, causing a modest decline in inventory at producers.
3. China PP Inventory at Sample Ports up
On October 10, 2025, the PP port inventory increased marginally by 0.36% from September 26, with imported cargoes arriving at ports gradually after the holiday. The PP futures prices spiraled downwards, failing to bolster sentiment in the spot market. Meanwhile, softened feedstock costs during the holiday contributed to a modest pullback in USD-denominated offers. Downstream and end users maintained limited purchases of PP with a cautious stance, leading to a slight rise in port inventory.
4. China PP Inventory at Sample Traders down
On October 10, 2025, the overall PP inventory at sample traders registered a drop of 4.04% from September 26. Before the National Day holiday, agents actively pre-sold goods for the holiday period and beyond, with buyers gradually taking delivery. After the holiday, the PP market was weighed down by falling crude oil and propane prices, leading to a drop in the futures prices and a stronger spot-futures price spread. Hedgers executed positive arbitrage strategies with substantial volume at low prices, further reducing inventory. Consequently, the post-holiday inventory at traders declined overall. Therein, inventory reduction in South China lagged behind that in North China and East China.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
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