China Morning Snapshot: 13 December 2017

The morning session on Dalian Commodity Exchange was relatively bearish. Both PP and LLDPE contracts for May delivery inched CNY96/ton ($15/ton) and CNY90/ton ($14/ton) lower respectively. PP closes the first half of the trading day at CNY9040/ton ($1167/ton without VAT) while LLDPE at CNY9435/ton ($1218/ton without VAT).       

Traders in spot market agreed to CNY50/ton reduction on both homo-PP and LLDPE film cargoes from the previous trading day. Spot PP in Eastern China stands in the range CNY9050-9300/ton ($‎‎1168-1201/ton without VAT). Spot LLDPE film traded in Northern China at CNY9500-9700/ton ($‎‎1227-1252/ton without VAT). All based on EXW China, including VAT, cash term.
 

There has not been any major movement in the morning session. Trading activities remains mediocre as buyers refused to keep high stock amid slower than expected end product orders. Supply-demand is in a tight balance. It does not appear that suppliers are facing inventories pressure that could possibly lead to a large drop in prices in the immediate term.