As buyers begin to show resistance, a Chinese trader decided to revise their local PP offers following the futures market prices. After sitting on an uptrend in the last few days, futures and spot PP prices eventually moved down today. The trader cited that most buyers have started to show resistance toward higher prices; which led to weak buying sentiment. As SSESSMENTS.COM noted, September 2020 PP futures on the Dalian Commodity Exchange decreased as much as CNY109/ton ($15/ton) day on day, settling at CNY7,391/ton ($1,038/ton) by Thursday settlement. Following suit, the trader decided to adjust down their offers for local PP Homo Raffia between CNY100-200/ton ($14-28/ton) on a daily comparison.
On the other side, the trader further added that the leading Chinese polyolefins producers managed to maintain their offers stable from a day earlier as supported by the absence of inventory and sales pressure. As reported to SSESSMENTS.COM, the digestion rate of the inventory of the two leading polyolefins producers is quite healthy this week. In the days to come, the trader believes that the chance for local PP prices to move further down in the upcoming weeks is high.
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