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September delivery contract for both PP and LLDPE on Dalian Commodity Exchange recovered from the previous constant loses, and ending the first half of the trading day with CNY73/ton ($11/ton) and CNY50/ton ($8/ton) increased respectively. Futures PP reached CNY9142/ton ($1229/ton without VAT) while LLDPE settled at CNY9230/ton ($1241/ton without VAT).  

Sentiment in domestic spot market regained some strengths, and buyers started looking for cargoes that priced at the lower end of the overall market range. Spot homo-PP traded in Eastern China at CNY9000-9150/ton ($1210-1231/ton without VAT), EXW China, cash equivalent.

Meanwhile, spot LLDPE film is weak. Latest offers available indicated another CNY50-100/ton ($8-16/ton) reduction from the previous trading day to CNY9350-9500/ton ($1257-1278/ton without VAT).

Offers at the upper end of the overall price range are still facing stiff resistance, market sources informed and might extend the softening trend in the coming days in supplier’s effort to achieve the monthly target. Total PP and PE inventories at Sinopec and CNPC’s warehouses decreased 30,000 tons from yesterday to approximate 745,000 tons as of 29 May 2018.