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Sentiment on Dalian Commodity Exchange opened with firmer note, however retreated toward second half of the morning session. PP contract for September delivery loses CNY9/ton ($1/ton) by the end of the morning session to CNY8998/ton ($1188/ton without VAT) while LLDPE gained CNY25/ton ($4/ton) to CNY8975/ton ($1185/ton without VAT).

At the time this report is published, spot homo-PP in Eastern China stayed stable to CNY100/ton ($16/ton) decreased from previous trading day to CNY8950-9100/ton ($1182-1201/ton without VAT), EXW China, cash equivalent.

Spot LLDPE film in Northern China stayed stable to CNY50/ton ($8/ton) softer at CNY9150-9250/ton ($1208-1221/ton without VAT) with the same term.

Total inventories at Sinopec and CNPC’s warehouses piled up only 35,000 tons over the weekend to approximate 790,000 tons as of 25 June 2018. Players attributed this situation to some need basis purchases during afternoon last Friday whereby some buyers willing to replenish cargoes after price discounts.

Purchasing activities this morning remain weak, whereby sellers are still offering discounts to the market, however, price reduction range seems limited, as buyers claimed to have difficulties on getting cargoes with prices at lower level. Some players commented that if low end prices continuously to have some deals achieved, domestic market trend could be on the stabilizing trend in the near term.