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China Morning Snapshot - 04 December 2018China Morning Snapshot - 04 December 2018 |
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January delivery contract for PP extended the firming trend on Dalian Commodity Exchange this morning, which in turn provides strong support for the spot ground. In the meantime, LLDPE contract has switched to 1905 for May delivery and has been slow over the past two sessions.
Details on the spot and futures prices are shown in the following table:
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04 December 2018 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
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Dalian Commodity Exchange (Mid-day closing) |
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PP 1901 |
CNY 9042 |
USD 1136 |
+CNY 117 |
+USD17 |
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LLDPE 1905 |
CNY 8390 |
USD 1054 |
-CNY 10 |
-USD1 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 9300-9400 |
USD 1169-1181 |
+CNY 150 |
+USD22 |
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LLDPE (North China) |
CNY 9200-9300 |
USD 1156-1169 |
+CNY 50 |
+USD7 |
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**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.86 |
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Total inventories at Sinopec and CNPC’s warehouses digested 60,000 tons from the previous trading day to 670,000 tons as on 04 December 2018.
The market is recovering from weeks of falling and might sustain the near term, source said, considering the healthy purchasing interest and the optimistic outlook following the progressive trade talk between China and the USA.
“With the inventories digested in the current rate, we think suppliers would have full support to maintain a firm stance on prices in the near term. We have purchased some cargoes from both local and overseas sellers,” a buyer said.
Country
China
