China Morning Snapshot: 04 December 2017

May delivery contract on Dalian Commodity Exchange surged drastically at the beginning of the session, yet gradually retreat toward the break time. PP futures gained CNY197/ton ($30/ton) to CNY9068/ton ($1173/ton without VAT) and LLDPE futures rose CNY175/ton ($26/ton) at CNY9545/ton ($1234/ton without VAT). 

Spot market is much calmer in the morning session. Local PP offers in Eastern China area open at only CNY100/ton ($15/ton) higher, reaching CNY9100-9250/ton ($‎‎‎1164-1183/ton without VAT). 

Spot LLDPE film traded in Northern China with CNY50/ton ($8/ton) increased at CNY9600-9750/ton ($‎‎‎1235-1254/ton without VAT). All based on EXW China, including VAT, cash term.

Real transaction in spot ground is limited given the fact that buyers are monitoring the rally in futures market. At the meantime, many traders are limiting the number of mass offering with aim to recover debts before the year-end. Players are speculating that trading activities might remain thin in the coming days.