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China Morning Snapshot – 27 February 2019China Morning Snapshot – 27 February 2019 |
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May delivery contracts for both PP and LLDPE jump into the green zone this morning, however, the general sentiment remains pretty soft.
Details on the spot and futures prices are shown in the following table:
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26 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 1130 |
+CNY 38 |
+USD 6 |
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LLDPE 1905 |
CNY 8670 |
USD 1117 |
+CNY 20 |
+USD 3 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8700-8800 |
USD 1121-1134 |
-CNY 50 |
-USD 7 |
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LLDPE (North China) |
CNY 8650-8750 |
USD 1115-1128 |
-CNY 50/+CNY 50 |
-USD 7/+USD 7 |
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**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.69 |
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Total inventories at Sinopec and CNPC’s warehouses digested20,000 tons day-on-day to 945,000 tons as on 26 February 2019.
Apparently, purchasing momentum in domestic ground are getting inertia and buyers are looking for more discount given the persistent inventories pressure among local suppliers.
“The market might need a bit of more time to digest the current inventories. We are delivering some cargoes sold prior to the Lunar New Year while for new orders, customers are not very active,” a trader reported.
Country
China
