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China Morning Snapshot - 24 December 2018China Morning Snapshot - 24 December 2018 |
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Both PP and PE contracts for May delivery continue losing momentum on Dalian Commodity Exchange as the week opens. This has negatively impacted the sentiment in the spot ground.
Details on the spot and futures prices are shown in the following table:
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24 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 8424 |
USD 1052 |
-CNY 24 |
-USD3 |
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LLDPE 1905 |
CNY 8530 |
USD 1066 |
-CNY 50 |
-USD7 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 9050-9150 |
USD 1131-1143 |
-CNY 50-100 |
-USD7-15 |
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LLDPE (North China) |
CNY 9050-9300 |
USD 1131-1162 |
Stable |
Stable |
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**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.9 |
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Total inventories at Sinopec and CNPC’s warehouses piled up 70,000 tons from last Friday to 660,000 tons as on 24 December 2018.
Customers tend to take time to evaluate the market situation on the first trading day of the week. Transactions are rather slow, though traders are hoping to see some movements toward mid of the week based on the expectation that buyers might replenish cargoes before going for the long weekend holiday.
“We do hope to see a strong pre-Lunar New Year replenishment activities in the first half of January but at the moment, we prefer to be conservative,” a market source said.
Country
China
