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China Morning Snapshot – 08 January 2019China Morning Snapshot – 08 January 2019 |
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The upward momentum in the futures trading did not last until today. Both PP and LLDPE contracts for May delivery on Dalian Commodity Exchange plunged into the negative section this morning.
Details on the spot and futures prices are shown in the following table:
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08 January 2019 |
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 8666 |
USD 1089 |
-CNY 63 |
-USD9 |
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LLDPE 1905 |
CNY 8625 |
USD 1084 |
-CNY 20 |
-USD3 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 9150-9250 |
USD 1150-1162 |
+CNY 50 |
+USD7 |
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LLDPE (North China) |
CNY 9050-9250 |
USD 1137-1162 |
+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 reduced 65,000 tons from the previous trading day to 615,000 tons as on 08 January 2019. Despite a number of claims that producers are pushing cargoes to the distribution market, the large digestion in stocks underlining the reduced inventory pressure for now.
“Market was too aggressive in the previous session and buyers are taking a break today. We remain optimistic that purchasing activities would be healthy in the immediate term,” a trader added.
Country
China
