A cascading deterioration across Dalian paper markets entirely neutralised Shenhua's aggressive pre-holiday baseline concessions on Thursday, leaving the physical polyolefin complex mired in a severe structural stalemate as downstream converters aggressively retreated ahead of the Dragon Boat Festival.
A sustained deterioration across Dalian paper markets, compounded by the severe repricing of global crude, kept physical polyolefin engagement heavily suppressed on Tuesday, yielding partial clearances for mainstream PP and a total structural rejection of injection grades.
Support is now fading, as almost all of the affected lines are expected to return to operation by early July, and the prospect of restored output is already weighing on the market, easing the tight conditions that had defined the preceding two months.