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China Morning Snapshot - 07 December 2018China Morning Snapshot - 07 December 2018 |
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The most actively traded contract for both PP and LLDPE fell into the red zone this morning on the uncertainty of macroeconomic outlook. Domestic spot market quickly responded to the changes, though the sentiment is getting softer.
Details on the spot and futures prices are shown in the following table:
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07 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 9100 |
USD 1142 |
-CNY 78 |
-USD11 |
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LLDPE 1905 |
CNY 8440 |
USD 1059 |
-CNY 25 |
-USD4 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 9500-9600 |
USD 1192-1205 |
-CNY 100-150 |
-USD15-22 |
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LLDPE (North China) |
CNY 9250-9350 |
USD 1161-1173 |
Stable |
Stable |
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**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.87 |
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Total inventories at Sinopec and CNPC’s warehouses reduced 25,000 tons from the previous trading day to 575,000 tons as on 07 December 2018.
Besides reducing spot offers for homo-PP cargoes, local suppliers also become more willing to negotiate with serious buyers. “Customers have already purchased sufficiently. We would have to wait and see if sentiment could pick up in the coming week,” a trader added.
The hidden concern that local traders are having here is that market might revisit the post-National Day Holiday situation. As buyers have already stocked up the needed quantity, market might trace the softening trend again.
Country
China
