China Morning Snapshot: 05 March 2018

May delivery PP and LLDPE futures opened with firm note, however retreated toward the end of the morning session. PP contract loses CNY50/ton ($8/ton) to CNY9195/ton ($1242/ton without VAT) while LLDPE closed at CNY9575/ton ($1293/ton without VAT), a decrease of CNY65/ton ($10/ton).

There are little changes in term of price list for both PP and PE, though traders seem willing to offer CNY50/ton discount on serious deals across the country. Homo-PP offers in Eastern China stand in the range CNY‎‎‎9050-9150/ton ($‎‎1222-1235/ton without VAT), EXW China, cash equivalent.

LLDPE film offers in Northern China are reported at CNY9350-9500/ton ($‎‎1262-1283/ton without VAT), with the same term.

In Southern China area, traders are seeing better demand condition for homo-PP cargoes, however, not in the country’s largest PP demand centre – Eastern area. Buyers have fully returned to work after the Chap Goh Mei festival, yet most are holding cautious stance in order to have clearer market direction before making decision.

Traders on the other hand, hoping to see better demand condition in the near term, which might prevent domestic PP market from any further reduction.