China Morning Snapshot: 07 December 2017

May delivery contract on Dalian Commodity Exchange poses significantly weak trend for morning session, with PP futures reduced CNY278/ton ($42/ton) to CNY8881/ton ($1148/ton without VAT). LLDPE futures decreased CNY195/ton ($30/ton) at CNY9355/ton ($1210/ton without VAT).

Domestic spot PP in Eastern China stands in the range CNY8950-9150/ton ($‎‎1157-1183/ton without VAT), about CNY150-200/ton ($23-30/ton) drop while some with slight discounts as compared to yesterday. Meanwhile, spot LLDPE film traded in Northern China reduced CNY50/ton ($8/ton) at CNY9600-9700/ton ($‎‎1241-1254/ton without VAT). All based on EXW China, including VAT, cash term.

Buying appetite in domestic market remain weak, with some traders managed to conclude some deals after price reduction, as converters are replenishing some cargoes at market low-end prices. Players are feeling uncertain on market direction with recent fluctuation of futures market trend, meanwhile buyers tend to be remain calm with continuous need-basis purchases.