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Entering the second trading day, September delivery contracts on Dalian Commodity Exchange started to show weakness. By the end of the morning session, PP futures fell CNY50/ton ($8/ton) to CNY9024/ton ($1228/ton without VAT) while LLDPE loses CNY25/ton ($4/ton) to CNY9290/ton ($1264/ton without VAT).

It appears that Chinese buyers have mostly completed replenishing material after almost two consecutive weeks of buying, as sentiment begins to cool off toward the end of the week. Suppliers in Eastern China offer CNY50/ton ($8/ton) discount on homo-PP cargoes today, bringing latest prices to CNY‎‎‎‎8850-9050/ton ($‎‎‎1204-1232/ton without VAT).

In Northern China, spot offers for LLDPE film remain firm, at CNY9450-9650/ton ($‎‎‎1286-1313/ton without VAT), CNY50/ton ($8/ton) increased day on days, all based on EXW China, cash equivalent.

“Sales drop slightly today, though we remain optimistic about the near-term outlook given a series of maintenance shutdown taking place in April and May,” a trader commented. To confirm the situation, a coal-based PP producer said, “Our customers have stocked up comfortable inventories and started to take a break. Besides the discount given on spot homo-PP cargoes, we are open to negotiation with serious buyers now.”

Total PP and PE inventories at Sinopec and CNPC fell 20,000 tons day on day to approximate 780,000 tons as of 12 April 2018.