China Morning Express: 30 November 2017

January delivery contract on Dalian Commodity Exchange traded at fluctuating trend but showed significant reduction toward the end of morning session, with PP futures reduced CNY97/ton ($15/ton) to CNY8804/ton ($1138/ton without VAT). LLDPE futures slipped CNY5/ton ($1/ton) to CNY9555/ton ($1236/ton without VAT).

Domestic spot PP in Eastern China stands in the range CNY9000-9150/ton ($‎‎1164-1183/ton without VAT), a CNY50-100/ton ($8-15/ton) firmer compared to yesterday. Meanwhile, spot LLDPE film traded in Northern China remain largely stable, at CNY9550-9750/ton ($‎‎1235-1261/ton without VAT). All based on EXW China, including VAT, cash term.

Buying appetite in domestic market are slow in the morning, as buyers are showing resistance toward the market high end prices, while sentiment turned weaker after futures market especially for PP poses a significant weaker trend toward the closing of morning session. Most of the buyers claimed to have replenished since beginning of the week, hence taking wait and see stance for further movement in the afternoon.