PP spot-futures basis reduces and spot pressure remains

PP spot-futures basis narrowed down continuously since early-Nov, and the current spot price was almost equal to and even discount with futures. It was mainly due to the continuous weakness of the spot market. PP futures had rebounded 350yuan from end-Nov to early-Dec, while the spot only rose 50yuan. And when PP futures fell down, spot price dropped more steeply. PP spot-futures basis had narrowed around 500yuan in just one month.