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Futures market started the new trading day on a firm note, however, trim all the gains by the end of the morning session. PP contract enters the break-time losing CNY30/ton ($5/ton) to CNY9317/ton ($1257/ton without VAT). LLDPE contract dip CNY55/ton ($9/ton) to CNY9215/ton ($1243/ton without VAT).

A strong sense of cautiousness blankets the spot ground after two consecutive softening sessions on Dalian Commodity Exchange. Traders in Eastern China continue to offer CNY50/ton ($8/ton) discount on spot homo-PP to smoothen sales process, sending the latest prices to CNY9250-9350/ton ($1248-1261/ton without VAT), EXW China, cash equivalent.

Spot LLDPE film in Northern China remains stable at CNY9300-9400/ton ($1255-1268/ton without VAT) with the same term. 

Transactions remain thin. Total polyolefins inventories at Sinopec and CNPC’s warehouses reportedly pile up 10,000 tons from the previous day to approximate 690,000 tons as of 14 June 2018. Meanwhile, demand might not see any significant improvement in the near term. A number of converters in the PP sectors are considering to lower production rate to protect profit margins amid lacking end product orders. 

Suppliers are on the other hand believed that tight supply stemming from heavy maintenance shutdown in the local ground might prevent domestic prices from any possible drastic slide.