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Dalian Commodity Exchange remains weak this morning with PP contract for September delivery loses another CNY29/ton ($4/ton) to CNY9144/ton ($1216/ton without VAT). LLDPE contract ended the morning session at CNY9095/ton ($1210/ton without VAT), a CNY30/ton ($5/ton) softer day on day. 

Domestic spot market sees more inquiries this morning, as buyers returned to check on the latest offers, however, real transactions are rather disappointed. Spot PP and PE fall CNY50-100/ton ($8-16/ton) compared to the previous day, as a result.

At the time this report is published, spot homo-PP in Eastern China is traded at CNY9050-9200/ton ($1204-1224/ton without VAT), EXW China, cash equivalent.

Spot LLDPE film in Northern China stands at CNY9250-9300/ton ($1231-1237/ton without VAT) with the same term.

There are no changes in the total PP and PE inventories at Sinopec and CNPC’s warehouses, at 795,000 tons as of 20 June 2018, indicating the sluggish condition here. “Converters are very cautious about fresh replenishment as trade tension with the USA escalates over the weekend. End products export to the USA have been threatened with 25% tariffs, hence market might remain slow in the near term,” a trader said.