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Dalian Commodity Exchange ended the morning session on a positive note as PP futures gains CNY36/ton ($6/ton) while LLDPE increased CNY20/ton ($3/ton) from the previous session. By the break-time, September delivery contract for PP reached CNY9280/ton ($1256/ton without VAT) and LLDPE stood at CNY9460/ton ($1280/ton without VAT). 

There has not been any major movement in term of trading activities in domestic spot market given the fact that buyers continue resisting the current market levels. As a result, total PP and PE inventories at Sinopec and CNPC warehouses pile up 5,000 tons from the previous day to approximate 790,000 tons as of 16 May 2018.

“With futures trading regaining some strength, we attempted to lift spot prices by CNY50/yon ($8/ton) and to no surprises that we are unable to move any tonnage. The market needs some correction to draw buyers back,” a trader said.

At the time this report is published, spot homo-PP traded in Eastern China stand at CNY9150-9300/ton ($1238-1259/ton without VAT), EXW China, cash equivalent while LLDPE film in Northern China is offered in the range CNY9700-9800/ton ($1313-1326/ton without VAT).