China Morning Snapshot: 26 December 2017

Futures contract on Dalian Commodity Exchange inched slightly higher by the end of the morning session, though market does seem to loss momentum in the holiday week. May delivery contract for LLDPE gained CNY40/ton ($6/ton) to CNY9645/ton ($1259/ton without VAT) while PP contract added CNY25/ton ($4/ton), reaching CNY9238/ton ($1205/ton without VAT).

 Eastern China market remains stable to CNY50/ton ($8/ton) softer day on day, with spot homo-PP stands in the range CNY‎9100-9200/ton ($1187-1200/ton without VAT), EXW China, cash equivalent.

Similarly, LLDPE film offers in Northern China shreds CNY50/ton ($8/ton) to CNY9450-9650/ton ($1233-1259/ton without VAT), with the same term.

Most buyers claimed to have completed replenishment activities for the year and at the moment only buy a small quantity as prices go softer. This has caused the sentiment to be dull since the week begins. This condition might persist throughout the week, yet no drastic reduction in prices is expected given the lack of inventories pressure at sellers’ side.