- On Thursday, June 11, crude oil prices dropped by more than 8%, posting their largest one-day loss since late April following Wednesday downbeat economic outlook by the Fed, evidence of climbing cases of coronavirus, and a weekly climb in U.S. inventories. In turn, SSESSMENTS.COM noted that September 2020 PP prices on the Dalian Commodity Exchange posted a decline of CNY52/ton ($7.3/ton) as observed at 2:30 PM (GMT+8), open at 7,288/ton ($1,031/ton) on morning trading session. Following a reduction in the futures market, a Chinese trader initiated a price reduction of between CNY50-100/ton ($7-14/ton) on local PP Homo Raffia cargoes as compared to Thursday’s level, available in the market between CNY7,850-8,050/ton ($1,111-1,139/ton) on cash, EXW China basis and including 13% VAT. The trader pointed out that most buyers might prefer to stay on the sidelines to monitor the market, and reluctant to take the cargoes as today is the last trading day for this week.
- On the supply front, market sources in China revealed to SSESSMENTS.COM on the latest updates of inventory level of the two leading Chinese polyolefins producers. As of Friday morning, total inventory level at both producers recorded a reduction of 20,000 tons from Thursday’s level, stood at 720,000 tons. When compared to Monday’s level, it showed a significant reduction of 120,000 tons.
