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China Morning Snapshot – 24 April 2019China Morning Snapshot – 24 April 2019 |
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September delivery contracts for PP and LLDPE on Dalian Commodity Exchange enter the break-time on a rather diverge trend. However, the changes are not significant enough to alter the sentiment in the spot ground.
Details on the spot and futures prices are shown in the following table:
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24 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 8692 |
USD 1115 |
+CNY 32 |
+USD 5 |
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LLDPE 1909 |
CNY 8265 |
USD 1060 |
-CNY 30 |
-USD 4 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8800-8900 |
USD 1129-1142 |
Stable |
Stable |
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LLDPE (North China) |
CNY 8400-8450 |
USD 1078-1084 |
-CNY 100 |
-USD 15 |
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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 reduced 25,000 tons from yesterday to 915,000 tons as on 24 April 2019.
Customers continue to avoid purchasing cargoes beyond the immediate need despite the recent surge the energy complex. Sellers are expecting to see some pre-holiday replenishment activities in the coming days, yet there has not been any clear indication from the buyer’s side.
“We plan to offer additional discount to stimulate the demand. Customers are too conservative while local availability is rather comfortable. We think the import market might face increased downward pressure if local ground does not improve,” a trader said.
Country
China
