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Sentiment on Dalian Commodity Exchange remains firm throughout the first trading hours today. PP contract for September delivery added CNY43/ton ($6/ton) by the end of the morning session at CNY9117/ton ($1187/ton without VAT) while LLDPE increased CNY30/ton ($5/ton) to CNY9145/ton ($1191/ton without VAT).

At the time this report is published, spot homo-PP in Eastern China jumped CNY50-100/ton ($8-16/ton) from previous trading day to CNY9100-9200/ton ($1185-1198/ton without VAT), EXW China, cash equivalent.

Spot LLDPE film in Northern China is rather stable at CNY9150-9300/ton ($1192-1211/ton without VAT) with the same term.

Total inventories at Sinopec and CNPC’s warehouses dropped 25,000 tons day-on-day to approximate 690,000 tons as of 28 June 2018. Trades are mediocre towards the weekend and the depreciation of the Chinese Yuan might continue to support firm domestic prices in the near term.

“We are watching out for any sign of improvement in demand as preparation for the agricultural season and Single Day sales could start anytime. This could ease the supply pressure on LDPE film market,” a trader said.