China Morning Snapshot: 09 January 2018

Futures contract on Dalian Commodity Exchange loses steam today and poses weak trend during the morning session. May delivery contract for LLDPE decreased CNY50/ton ($8/ton) to CNY9920/ton ($1304/ton without VAT) while PP contract reduced CNY68/ton ($10/ton), reaching CNY9483/ton ($1247/ton without VAT).

Eastern China market stayed stable to CNY50/ton ($8/ton) softer compared to yesterday, with spot homo-PP stands in the range CNY‎‎9350-9500/ton ($‎1229-1249/ton without VAT), EXW China, cash equivalent.
Meanwhile, LLDPE film offers in Northern China reduced CNY50-100/ton ($8-15/ton) at CNY9750-9850/ton ($‎1282-1295/ton without VAT), with the same term.

Buying activities remain weak for both converters and traders as most of the local producers are still insisting on high offer level, meanwhile some stepped back by offering volume discount of CNY50/ton ($8/ton) for 100 tons and above. However, most of the buyers are still on the cautious stance, meanwhile arbitrage traders claimed to have no opportunity to buy or sell cargoes as there are very narrow price gap between spot and futures market.