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Dalian Commodity Exchange opened on a firm note; however, lose most of its gains by the end of the morning session. September delivery contract for PP entered the break-time falling CNY33/ton ($5/ton) to CNY9290/ton ($1255/ton without VAT) while LLDPE decreased CNY60/ton ($9/ton) at CNY9355/ton ($1264/ton without VAT).

Thanks to the healthy trading activities in the previous trading day, total PP and PE inventories at Sinopec and CNPC’s warehouses dropped 35,000 tons to approximate 755,000 tons as of 22 May 2018. Domestic suppliers are attempting to keep both PP and PE offers stable day on day as a result.

Spot homo-PP traded in Eastern China at CNY9150-9250/ton ($1236-1250/ton without VAT). Meanwhile, spot LLDPE film in Northern China stands at CNY9550-9700/ton ($1290-1311/ton without VAT).

Concern over the near-term outlook for LLDPE film is getting stronger as more and more cargoes purchased previously at lower costs are arriving on the market. “In spite of the stable price list, we are open to negotiation with regular customers at the moment. Supply for LLDPE film is improving visibly, which might pressure prices in the coming weeks,” a trader informed.