Risk piles in PP market after price fluctuates up

Since the beginning of June, PP futures and spot prices have rebounded significantly. The futures contract for Sep 2019 increased to limit high even, rising greatly by 15% from 7,811yuan/mt to 8,994yuan/mt, and then began to fall largely and kept wide fluctuations. At the same time, the open interest reduced evidently. It indicated the fact that speculators were selling at profit-taking rates after the spot-futures basis had been revised from high positive rate to flat and even negative zone again.

(Day K-line for DCE PP1909 contract)