Views:2 Author:Site Editor Publish Time: 2019-07-24 Origin:Site
But with the spread between spot and futures PP kept widening, downstream felt difficult to follow up. When prices jumped up, sales weakened. Stock piled up gradually and orders were thin, forcing some plants to shut temporarily. And some major plants suffered tight capital flow as their stock was high.
So far, spot-futures contract was steadily in negative zone. Many traders choose to hedge into futures after spot trading waned, and this had to some extent locked up spot liquidity, especially the low-end sources. But spot trading at market higher end was still ill. It lay risks to late market, as when speculators withdraw from the futures contract, it would fall greatly and more low-end sources would flood into spot PP market, and drag down the price again.