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Dalian Commodity Exchange remains in the red zone throughout the morning session. May delivery contract for PP plunged CNY145/ton ($23/ton) to CNY8770/ton ($1184/ton without VAT) while LLDPE loses CNY90/ton ($14/ton) to CNY9230/ton ($1246/ton without VAT).

Interestingly, domestic sellers started to implement firmer stance on local homo-PP offers, with cargoes traded in Eastern China area witness to CNY50-100/ton ($8-16/ton) increased day on day to CNY‎‎‎8650-8800/ton ($‎‎1168-1188/ton without VAT), EXW China, cash equivalent. 

Meanwhile, spot LLDPE film in the Northern market held steady in the range CNY9100-9300/ton ($‎‎1229-1256/ton without VAT).     

Domestic demand is coming back in a marathoner’s pace, reflecting in a 20,000 tons reduction in total PP and PE inventories at major domestic producers’ warehouses, to 940,000 tons as of 16 March 2018. It appears that manufacturers might need more time to stabilise the workforce after the long Lunar New Year holiday, from which market participants continue to project a better demand condition only in early April.