PP recent-months pressure remains with liquidity increasing

Since the Spring Festival, PP spot-futures price spread spiraled higher from around -200yuan/mt to 50yuan/mt, which was profitable for hedgers. However, with the gradual strengthening of the PP spot-futures basis, hedgers started to sell their spot cargoes and market sources increased. Moreover, the destocking progress of upstream was not smooth, thus they had strong willingness to sell goods at relatively lower price and market price had been affected.