China Morning Snapshot: 08 January 2018

Futures contract on Dalian Commodity Exchange poses firm trend for the morning session. May delivery contract for LLDPE firmed up CNY25/ton ($4/ton) to CNY9965/ton ($1312/ton without VAT) while PP contract added CNY59/ton ($9/ton), reaching CNY9558/ton ($1259/ton without VAT).

Eastern China market stayed stable to CNY50/ton ($8/ton) higher compared to last Friday, with spot homo-PP stands in the range CNY‎‎9400-9500/ton ($‎1238-1251/ton without VAT), EXW China, cash equivalent.
Meanwhile, LLDPE film offers in Northern China remained largely stable at CNY9850-9950/ton ($‎1297-1310/ton without VAT), with the same term.

Most of the converters are on the cautious stance this morning since it is beginning of the week. However, traders are expecting that some converters might have no choice and being forced to accept the high price as their on hand inventory is low, lots of the traders are expecting the pre-holiday replenishing activities might not be having significant peak purchase this time.