China Morning Snapshot: 21 March 2018

May delivery contracts for both PP and LLDPE on Dalian Commodity Exchange inched slightly higher by the end of the morning session. PP closed at CNY28/ton ($4/ton) into the green zone, reaching CNY8694/ton ($1174/ton without VAT). LLDPE gained CNY30/ton ($5/ton) to CNY9290/ton ($1254/ton without VAT).    

Stronger futures market does not seem sufficient to boost trading activities on the spot ground. Buyers are very much into the cautious stance as the rebound on Dalian Commodity Exchange might only be temporary.

Spot homo-PP in Eastern China inched CNY50/ton ($8/ton) higher, trading in the range CNY‎‎‎8550-8650/ton ($‎‎1154-1168/ton without VAT). Spot LLDPE film in Northern China remains unchanged at CNY9100-9350/ton ($‎‎1229-1262/ton without VAT), all based on EXW China, cash equivalent.

Trader’s effort to keep prices at that stable to firmer trend might result in little outcome as several others have openly expressed the willingness to negotiate with serious buyers. On a bright side, total PP and PE inventories at major domestic producers’ warehouses digested 20,000 tons to 960,000 tons.