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Futures market loses steam throughout the morning session. September delivery contract for PP reduced CNY60/ton ($9/ton) from the previous day to CNY9214/ton ($1247/ton without VAT). LLDPE contract also decreased CNY25/ton ($4/ton) to reach CNY9525/ton ($1289/ton without VAT).   

Domestic offers for homo-PP see no changes from the previous session while LLDPE remained stable to CNY50/ton ($8/ton) higher. Spot homo-PP prices in Eastern China are currently standing at CNY9150-9300/ton ($1238-1259/ton without VAT), EXW China, cash equivalent in Eastern China.

In the Northern market, LLDPE film is offered in the range CNY9650-9850/ton ($1306-1333/ton without VAT) with the same payment and delivery term.  

Thanks to active traders, who are replenishing stock, total PP and PE inventories at Sinopec and CNPC warehouses fell 40,000 tons day on day to approximate 790,000 tons as of 8 May 2018. However, the local market appears to be calmer this morning as futures trading soften, sending a chill wave down to the arbitrage segment.