China Morning Express: 27 November 2017

January delivery contract on Dalian Commodity Exchange opens the first trading day of the week at relatively firm notes, yet looses steam toward the end of the session. PP futures inches CNY13/ton ($2/ton) lower to CNY9185/ton ($1189/ton without VAT). LLDPE futures slip CNY20/ton ($3/ton) to CNY9730/ton ($1260/ton without VAT).

There have not been any changes in spot offers from last Friday in spite of the soft futures trading. Domestic spot PP in Eastern China stands in the range CNY9100-9200/ton ($‎1178-1191/ton without VAT).

Spot LLDPE film traded in Northern China at CNY9700-9800/ton ($‎1256-1269/ton without VAT). All based on EXW China, including VAT, cash term.

Trading activities in spot sector are steady with high number of price inquiries, yet minimal number of real transactions. It appears that domestic producers are in no rush to adjust offers given the obvious lack of sales pressure. On 27 November 2017, total PP and PE inventories at major local producers’ warehouses are reported at 650,000 tons, which is way below the traditional psychological benchmark.