China Morning Snapshot: 06 February 2018

There has not been any major movement in the first half of the trading day on Dalian Commodity Exchange. PP contract added only CNY10/ton ($2/ton) from the previous day to CNY9435/ton ($1282/ton without VAT). LLDPE futures is rather weak, slipping CNY55/ton ($9/ton) to CNY9620/ton ($1307/ton without VAT).  

Given the thickening holiday mood, local traders have not implemented any changes on spot offers for both PP and PE thanks to the constant support from the lack of inventory pressure. Homo-PP in Eastern China ranging CNY‎‎‎9300-9450/ton ($‎‎1264-1284/ton without VAT) while LLDPE film in Northern China remains at CNY9550-9650/ton ($‎‎1298-1311/ton without VAT), EXW China, cash equivalent.

The general sentiment is weakening with the long Lunar New Year holiday fast approaching. Many companies, including logistics businesses are gradually taking off from work. “We are open to negotiation though cargoes only can be delivered after the holiday. Some customers are making last minute purchases, however we do expect continued weakening demand in the coming days,” a trader said.