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China Morning Snapshot - 12 December 2018China Morning Snapshot - 12 December 2018 |
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Both contracts for LLDPE and PP on Dalian Commodity Exchange has switched to May delivery today. Market opens at the upside following positive news on the progressive trade talks between China and the USA, however, spot market remains pretty sluggish.
Details on the spot and futures prices are shown in the following table:
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12 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 1905 |
CNY 8336 |
USD 1043 |
+CNY 21 |
+USD3 |
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LLDPE 1905 |
CNY 8385 |
USD 1049 |
+CNY 5 |
+USD1 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 9150-9200 |
USD 1145-1151 |
-CNY 100-150 |
-USD15-22 |
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LLDPE (North China) |
CNY 9250-9450 |
USD 1157-1182 |
-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 6.89 |
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Total inventories at Sinopec and CNPC’s warehouses remained unchanged from yesterday at 635,000 tons as on 12 December 2018.
Domestic spot market continues to slide in spite of the positive sentiment on the futures trading platform. Several major traders have expressed the willingness to negotiate with serious buyers besides the official price reduction.
“All eyes are on import market. With the weakness in local ground, the rebound in the import offers become very much questionable,” a market source added.
Country
China
