China Morning Snapshot: 05 February 2018

Futures market is rather mixed in the morning session. While LLDPE contract for May delivery fell CNY25/ton ($4/ton) from the previous session to CNY9690/ton ($1315/ton without VAT), PP contract gained CNY32/ton ($5/ton) to CNY9453/ton ($1282/ton without VAT).

Sentiment in the spot market is diminishing as a number of players are leaving for the long Lunar New Year holiday. Spot homo-PP in Eastern China see CNY50/ton ($8/ton) reduction to CNY‎‎‎9300-9450/ton ($‎‎1262-1282/ton without VAT), EXW China, cash equivalent. 

Offers for LLDPE film in Northern China witness a drop of CNY50-100/ton ($8-15/ton) to CNY9550-9650/ton ($‎‎1296-1309/ton without VAT), with the same term.

Traders reported to have concluded a number of deals for cargoes delivered after the holiday at CNY50/ton ($8/ton) below current market levels. There is a strong believed that the current firming trend would sustain throughout the month and even in the post holiday term.