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China Morning Snapshot – 12 February 2019China Morning Snapshot – 12 February 2019 |
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May delivery contracts for both PP and LLDPE remained in the negative territory throughout the morning session, as the market is not completely active yet.
Details on the spot and futures prices are shown in the following table:
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12 February 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 1113 |
-CNY 23 |
-USD 3 |
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LLDPE 1905 |
CNY 8610 |
USD 1093 |
-CNY 80 |
-USD 12 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8850-9000 |
USD 1123-1143 |
-CNY100 |
-USD15 |
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LLDPE (North China) |
CNY 8700-9000 |
USD 1105-1143 |
Stable |
Stable |
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**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.79 |
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Total inventories at Sinopec and CNPC’s warehouses piled up 10,000 tons from the previous trading day to 1,050,000 tons as on 12 February 2019.
There has not been any major development in the domestic spot market amid the absence of most buyers. Post-holiday replenishment activities might only pick-up in the coming week, sources said, which giving traders some room to fish for discounts.
“Inventory pressure is mounting on trader’s side. With the poor performance in the futures market, we think suppliers might be more willing to offer discount in the coming days,” a buyer added.
Country
China
