Market spot sources are gradually increasing as plants restarts from turnaround and new start-ups run smoothly

Market spot sources are gradually increasing as plants restarts from turnaround and new start-ups run smoothly. Recently, since spot price spirals down and futures is fluctuating, spot-futures basis is narrowing down. It is expected that market sources in East China would increase significantly in the end of this week and next week, including supply form restarted plants and goods transfer from other regions. Market price in East China may drop sharply in the short-term. In plant news, basically no plants would shut for turnaround after Nov 15 except for few short maintenance. The operating rate have rebounded above 90% and supply would return to this year’s highest level. Therefore, the spot-futures basis may be narrowed down as spot price fall down sharply in the late market.