China Morning Snapshot: 14 March 2018

Futures market on Dalian Commodity Exchange rebounded slightly in the morning session with PP contract increased CNY61/ton ($10/ton) to CNY8951/ton ($1211/ton without VAT), while LLDPE jumped CNY140/ton ($22/ton) to CNY9330/ton ($1262/ton without VAT).

Thanks to firmer futures trading, the domestic spot market is regaining some balances after seven straight sessions of reducing. In fact, spot LLDPE film traded in Northern China up CNY50/ton ($8/ton) day on day to CNY9100-9350/ton ($‎‎1237-1264/ton without VAT).

Homo-PP offers in Eastern China remain largely unchanged from the previous day at CNY‎‎‎8700-8900/ton ($‎‎1177-1204/ton without VAT), EXW China, cash equivalent.  

On the surface, the market seems to be heading for a more stabilized condition, however, traders are still willing to offer discounts for serious buyers. Converters are not active in making fresh replenishment, and as a result, total PP and PE inventories at major domestic producers’ warehouses only drop 10,000 tons to 980,000 as of 14 March 2018.