China Morning Snapshot: 11 December 2017

May delivery contract on Dalian Commodity Exchange fluctuate throughout the morning session, yet concluded at CNY125/ton ($19/ton) hike at CNY9068/ton ($1173/ton without VAT). LLDPE futures only add CNY20/ton ($3/ton) reaching CNY9455/ton ($1223/ton without VAT).    

Domestic spot PP in Eastern China stands in the range CNY9050-9250/ton ($‎‎1170-1196/ton without VAT), up CNY100/ton ($15/ton) compared to last Friday. Meanwhile, spot LLDPE film traded in Northern China remain largely stable to CNY50/ton ($8/ton) increased at CNY9550-9700/ton ($‎‎1235-1254/ton without VAT). All based on EXW China, including VAT, cash term.

There has not been any major changes on the first trading day of the week. Despite stronger sentiment on the futures market, real trading acitivities in spot ground remains soft. According to market sources, supply for natural gas in Northen China is facing serious shortage since the government initiates the clean energy program that aims to reduce the use of coal in generating heat during the winter time. Such issues might lead to a temporary eased in coal consumption regulation from the energy sector, which might boost coal demand. Players are speculating that coal based polyolefin sector therefore, might enjoy a spill-over effect.