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China Morning Snapshot – 28 January 2019China Morning Snapshot – 28 January 2019 |
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The softness in futures trading persists throughout the first trading hours of the new week, as both PP and LLDPE contracts for May delivery remain in the negative zone.
Details on the spot and futures prices are shown in the following table:
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28 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 8767 |
USD 1123 |
-CNY 35 |
-USD 5 |
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LLDPE 1905 |
CNY 8695 |
USD 1114 |
-CNY 35 |
-USD 5 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 9000-9150 |
USD 1153-1172 |
-CNY 50 |
-USD 7 |
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LLDPE (North China) |
CNY 8850-9000 |
USD 1114-1153 |
Stable |
Stable |
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**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.73 |
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Total inventories at Sinopec and CNPC’s warehouses piled up 80,000 tons from last Friday to 605,000 tons as on 28 January 2019.
A majority of manufactures in the country have already left for the Lunar New Year holiday, from which market sentiment becomes dull and might worsen in the remaining days of the week. Most movement this week in China might only be a result of position taking activities among traders, who have been cautious about building high stock.
“In the meantime, we do not expect any large swing in market development given the overall low inventories pressure among local producers and traders,” a source added.
Country
China
