China Morning Snapshot: 18 December 2017

The morning session on Dalian Commodity Exchange opened with firm note but retreated slightly toward end of the session. Both PP and LLDPE contracts for May delivery increased CNY65/ton ($10/ton) and CNY20/ton ($3/ton) respectively. PP closes the first half of the trading day at CNY9028/ton ($1167/ton without VAT) while LLDPE at CNY9415/ton ($1217/ton without VAT).       

Spot PP in Eastern China stands in the range CNY9000-9150/ton ($‎‎1164-1183/ton without VAT), a stable to CNY50/ton ($8/ton) lower than last Friday, meanwhile spot LLDPE film traded in Northern China at CNY9500-9650/ton ($‎‎1228-1248/ton without VAT), remain largely stable as compared to last weekend. All based on EXW China, including VAT, cash term.

Buying activities remain slow with some buyers placing minimum orders in the morning. Sellers are more willing to offer discounts, and with the weaker futures market throughout the morning session, buyers tend to stay on the sideline wait and see.