China Morning Snapshot: 26 March 2018

Dalian Commodity Exchange opens the first trading day of the week on soft notes. The morning session ended with May delivery contract for PP loses CNY21/ton ($3/ton) and LLDPE drop CNY10/ton ($2/ton). Both contracts closed at CNY8524/ton ($1155/ton without VAT) and CNY9130/ton ($1237/ton without VAT) respectively.      

Spot offers for both PP and PE in domestic market emerge at the unchanged level week on week, though deals are observed at moderate discounts. Homo-PP traded in Eastern China at CNY‎‎‎8450-8550/ton ($‎‎1144-1158/ton without VAT). LLDPE film in Northern area is seen at CNY9100-9300/ton ($‎‎1233-1260/ton without VAT), all based on EXW China, cash equivalent.

Total PP and PE inventories at major domestic producers’ warehouse rose 65,000 tons throughout the weekend to approximate 965,000 tons as of 26 March 2018. However, buyers are coming back gradually. Traders reported achieving deals at the lower end of the overall price range, with a source added, “We think the market is nearing the bottom, for the fact that most local cargoes now are more competitive than import. We hope demand to pick up in the coming week.”