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China Morning Snapshot – 16 April 2019China Morning Snapshot – 16 April 2019 |
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September delivery contracts for both PP and LLDPE on Dalian Commodity Exchange continue to perform poorly this morning. However, spot market holds relatively stable.
Details on the spot and futures prices are shown in the following table:
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16 April 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 1909 |
CNY 8712 |
USD 1119 |
-CNY 65 |
-USD 10 |
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LLDPE 1909 |
CNY 8490 |
USD 1091 |
-CNY 30 |
-USD 4 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8900-9000 |
USD 1143-1156 |
Stable |
Stable |
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LLDPE (North China) |
CNY 8650-8750 |
USD 1111-1124 |
Stable |
Stable |
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**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.71 |
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Total inventories at Sinopec and CNPC’s warehouses reduced 10,000 tons from yesterday to 930,000 tons as on 16 April 2019. (Correction: Total inventories on 15 April 2019 was at 940,000 tons.)
Apparently, local homo-PP is still more competitive than many import cargoes at the moment and yet, customers are actively bidding for additional discounts. Meanwhile, demand from the agricultural film sector seems diminishing, as the traditional peak season is now dwindling.
“There are still two weeks to the Labor Day holiday and we hope to see better replenishment activities. Somehow, the inventories digestion rate this year is much slower than last year,” a trader commented.
Country
China
