China Morning Snapshot: 11 January 2018

May delivery contracts for both PP and PE concluded a fluctuated morning session at little changes. LLDPE futures reduced CNY10/ton ($2/ton) to CNY10020/ton ($1314/ton without VAT) while PP contract dropped CNY2/ton ($0.3/ton), reaching CNY9580/ton ($1256/ton without VAT).

Eastern China market stayed stable to CNY50/ton ($8/ton) firmer compared to yesterday, with spot homo-PP stands in the range CNY‎‎9450-9550/ton ($‎1239-1252/ton without VAT), EXW China, cash equivalent.

Meanwhile, LLDPE film offers in Northern China remained unchanged day on day at CNY9800-9900/ton ($‎1285-1298/ton without VAT), with the same term.
 

Players, especially arbitrage traders become more cautious when it comes to making additional purchases toward the end of the week with volatile futures market. Just yet, spot suppliers are very confident about the near term outlook citing the persistent low inventories level and expected continued improving demand condition, in line with the pre-Lunar New Year replenishment.