China Morning Snapshot: 23 January 2018

May delivery contracts for both PP and PE opened with sharp reduction, however poses significant hike toward the end of the morning session. LLDPE futures added CNY55/ton ($9/ton) to CNY9950/ton ($1329/ton without VAT) while PP contract increased CNY64/ton ($10/ton), reaching CNY9542/ton ($1274/ton without VAT).

Eastern China market poses stable trend with spot homo-PP stands in the range CNY‎‎9400-9500/ton ($‎1255-1269/ton without VAT), EXW China, cash equivalent.

Meanwhile, LLDPE film offers in Northern China also rollover at CNY9700-9850/ton ($‎1295-1315/ton without VAT), with the same term.

Buying activities are weak this morning, as buyers are mostly on the wait and see stance, meanwhile players feeling uncertain about upcoming direction, hence waiting for further movements in the afternoon. However, pre-holiday purchases are expected to continue within this week as lots of the small scale manufacturers and logistic companies will start enter holiday by end of next week onward.