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China Morning Snapshot – 25 February 2019China Morning Snapshot – 25 February 2019 |
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Despite the positive signal from the USA government regarding the extension in trade truce with China, the Dalian Commodity Exchange remains underperformed throughout this morning session.
Details on the spot and futures prices are shown in the following table:
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25 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 8703 |
USD 1126 |
-CNY 94 |
-USD 14 |
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LLDPE 1905 |
CNY 8640 |
USD 1117 |
-CNY 70 |
-USD 10 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8750-8850 |
USD 1122-1135 |
-CNY 100 |
-USD 14 |
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LLDPE (North China) |
CNY 8600-8800 |
USD 1103-1129 |
-CNY 50 |
-USD 7 |
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**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.72 |
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Total inventories at Sinopec and CNPC’s warehouses piled up 40,000 tons throughout the weekend to 990,000 tons as on 25 February 2019.
Sentiment in the domestic spot market is not strong apparently as buyers are taking time to evaluate the potential impact of the trade truce extension on the outlook. Sources fear that the unclear deadline might pose more risks than opportunity.
Local traders decided to offer some discounts to entice purchasing interest amid fewer real transactions. “Buyers have returned to work but refrain from making large buys. This might undermine the seller’s effort to maintain the market on the firming track. We are on the watch out mode now,” a trader commented.
Country
China
