China Morning Snapshot: 12 December 2017

May delivery contract on Dalian Commodity Exchange poses fluctuation trend throughout the morning session, and concluded at CNY53/ton ($8/ton) higher at CNY9142/ton ($1180/ton without VAT). LLDPE futures increased CNY50/ton ($8/ton) reaching CNY9530/ton ($1230/ton without VAT).    

Domestic spot PP in Eastern China stands in the range CNY9050-9150/ton ($‎‎1168-1181/ton without VAT), stable to CNY100/ton ($15/ton) reduced compared to yesterday. Meanwhile, spot LLDPE film traded in Northern China remain largely stable at CNY9550-9700/ton ($‎‎1233-1252/ton without VAT). All based on EXW China, including VAT, cash term.

Trading activities in domestic market remain slow in the morning, with most of the buyers still sourcing based on need, meanwhile several active purchasing activities for homo-PP injection are being observed in South China due to limited supply availability. However, players are mulling over the uncertainties of upcoming directions for futures market, hence planning to take cautious stance in the near term.