China Morning Snapshot: 15 January 2018

May delivery contracts for both PP and PE opened with firmer note, however lose steam toward end of the morning session. LLDPE futures firmed up CNY5/ton ($0.8/ton) to CNY10110/ton ($1344/ton without VAT) while PP contract reduced CNY5/ton ($0.8/ton), reaching CNY9633/ton ($1280/ton without VAT).

Eastern China market stayed stable to CNY50/ton ($8/ton) firmer compared to yesterday, with spot homo-PP stands in the range CNY‎‎9500-9600/ton ($‎1263-1276/ton without VAT), EXW China, cash equivalent.

Meanwhile, LLDPE film offers in Northern China firmed up CNY50-100/ton ($8-15/ton) at CNY9950-10000/ton ($‎1323-1329/ton without VAT), with the same term.

Manufacturers remained cautious on beginning of the week, with more buyers asking for offers, however, deals concluded are rather limited, especially futures market turned weaker toward end of the morning session. Traders are expecting for some pre-holiday purchase by converters these 1-2 weeks time as there will be some delivery disruption due to approaching chinese new year next month.