China Morning Snapshot: 29 January 2018

May delivery contracts for both PP and PE opened with firm note and weakened toward the end of the morning session. LLDPE futures showed a rollover at CNY9965/ton ($1346/ton without VAT) while PP contract reduced CNY4/ton ($1/ton), reaching CNY9555/ton ($1290/ton without VAT).

Spot homo-PP offers in Eastern China remain largely stable in the range of CNY‎‎9450-9550/ton ($‎1276-1289/ton without VAT), EXW China, cash equivalent.

Meanwhile, LLDPE film offers in Northern China also rollover at CNY9750-9900/ton ($‎1316-1337/ton without VAT), with the same term.

Buying activities among converters were slow on first trading day of the week, whereby mostly are on the sideline wait and see, meanwhile some arbitrage traders tried to place small orders on a cautious basis. However, futures market poses weaker trend toward end of the morning session, causing more players to plan to wait and see for more market movements in the afternoon.