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Dalian Commodity Exchange takes a breather this morning after the drastic hike in the previous session. September delivery contract gained CNY37/ton ($6/ton) to CNY9392/ton ($1265/ton without VAT). LLDPE contract added only CNY10/ton ($2/ton) to CNY9320/ton ($1255/ton without VAT).
 

Thanks to the surge in the futures market, total PP and PE inventories at Sinopec and CNPC warehouses fell as much as 40,000 tons from the previous trading day to approximate 715,000 tons as of 12 June 2018. 

“We still managed to achieve better deals for PP than PE today and as a result, we introduce another CNY50/ton ($8/ton) increase on spot cargoes. Buyers are very protective of profit margins, which is limiting our ability to implement large hike,” a trader informed.

At the time this report is published, spot homo-PP in Eastern China stands at CNY9300-9350/ton ($1253-1259/ton without VAT), EXW China, cash equivalent, up CNY50/ton ($8/ton).

Spot LLDPE film in Northern China is reported in the range CNY9300-9400/ton ($1253-1266/ton without VAT) with the same term, unchanged day on day.