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China Morning Snapshot - 17 December 2018China Morning Snapshot - 17 December 2018 |
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May delivery contract for both PP and LLDPE on Dalian Commodity Exchange move higher in the early trading hours of the first trading day of the week. This has lifted the sentiment in the local ground moderately.
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17 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 8595 |
USD 1074 |
+CNY 123 |
+USD18 |
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LLDPE 1905 |
CNY 8570 |
USD 1071 |
+CNY 80 |
+USD12 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 9200-9300 |
USD 1149-1152 |
+CNY 100 |
+USD14 |
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LLDPE (North China) |
CNY 9200-9400 |
USD 1149-1174 |
Stable |
Stable |
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**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.90 |
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Details on the spot and futures prices are shown in the following table:
Total inventories at Sinopec and CNPC’s warehouses piled up 45,000 tons from last Friday to 680,000 tons as on 17 December 2018.
Local traders seems very careful in lifting spot prices since purchasing activities remain mediocre. It is reported that converters are willing to buy PP more than PE, yet most buyers prefer to off-take small quantity only.
“Our customers are not confident about the rebound. The concern is that local producers might need to deplete more cargoes to free up the warehouse space in preparation for the long Lunar New Year,” a trader said.
Country
China
