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Dalian Commodity Exchange takes a hit just like other stock and futures markets after the USA decisively imposed heavy tariffs on imports from China. PP contract for September delivery shredded another CNY55/ton ($9/ton) by the end of the morning session to CNY9268/ton ($1244/ton without VAT). LLDPE contract closed at CNY9230/ton ($1239/ton without VAT), down CNY5/ton ($1/ton) from the previous day.   

Sentiment in domestic spot market sees very limited movement, which disappoints many suppliers, who were hoping to see some pre-holiday replenishment activities. China will be off on Monday, 18 June 2018 for the Dragon Boat Festival.

“Our customers are very reluctant to make new purchases despite knowing that some discounts would be made available for serious buyers. Therefore, we prefer to be cautious about stocking up additional quantity,” a trader said.

Spot homo-PP in Eastern China fell CNY50/ton ($8/ton) to CNY9200-9300/ton ($1235-1249/ton without VAT), EXW China, cash equivalent.

Spot LLDPE film in Northern China remains stable at CNY9300-9400/ton ($1249-1262/ton without VAT) with the same term. 

It is reported that total polyolefins inventories at Sinopec and CNPC’s warehouses reduced only 5,000 tons from the previous day to approximate 685,000 tons as of 15 June 2018, underlining the slow trading activities condition.