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It is the high tide for Dalian Commodity Exchange this morning that send September delivery contract for PP to the highest level seen since 2014. Spot ground again found a positive support for additional prices hike.

Details on the spot and futures prices are shown in the following table:

The development in the futures ground has unnerved spot buyers, who become very active this morning in checking for available quantity and offers prices. “However, very few actually proceed beyond that step. PP converters are taking time to balance the weak end product demand and high raw materials costs,” a trader commented.

On the other hand, arbitrage traders are scouting around spot market for lower costs cargoes with hope to leverage the firming futures prices. Total inventories at Sinopec and CNPC’s warehouses reduced 35,000 tons from yesterday at 675,000 tons as on 02 August 2018.