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The rally on Dalian Commodity Exchange finally takes a break, which market thought to be a technical correction. Spot suppliers are pretty prompt in responding to the latest development by offering CNY50-100/ton ($7-14/ton) discount on PP cargoes. 

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

Total inventories at Sinopec and CNPC’s warehouses dropped 25,000 tons from the previous trading day to 735,000 tons as on 11 October 2018. 

Local producer initially refused to adjust prices considering the low inventories pressure, however, the weakened purchasing interest among local buyers convinced such move. “Buyers have mostly replenished sufficient cargoes over the past couple of days, and withdraw to the sideline once there is a less optimistic sign. Market momentum switches too quickly,” a trader said.