China Morning Snapshot: 26 December 2017

Dalian Commodity Exchange extended the firming trend this morning with May delivery contract for PP added CNY32/ton ($5/ton) to conclude the morning session at CNY9306/ton ($1212/ton without VAT). LLDPE contract gained CNY90/ton ($14/ton) to CNY9780/ton ($1274/ton without VAT)

Spot homo-PP offers in Eastern China market started feeling the support from stronger futures trading, as traders implemented CNY100/ton ($15/ton) firmer day on day. The current price range stands at CNY‎9200-9300/ton ($1199-1212/ton without VAT), EXW China, cash equivalent.

Similarly, LLDPE film offers in Northern China added CNY100/ton ($15/ton) to CNY9550-9750/ton ($1244-1270/ton without VAT), with the same term.

Higher price levels received little support from conservative buyers. Many decided to withdraw to the sideline to monitor further development. To stimulate trading activities, a number of traders are offering discounts instead, especially on PE cargoes, with hope to lower stock on hand.