China Morning Snapshot: 29 March 2018

Dalian Commodity Exchange started the trading day on a weaker note but regained some strength towards the break time. May delivery contract for PP increased CNY35/ton ($6/ton) to CNY8615/ton ($1171/ton without VAT) and LLDPE up CNY20/ton ($3/ton) to CNY9185/ton ($1248/ton without VAT).    

Traders are attempting to hold firm on the cargoes to test market respond; however deals for spot homo-PP in Eastern China are CNY50/ton ($8/ton) lower day on day, at CNY‎‎‎8500-8600/ton ($‎‎1155-1169/ton without VAT).

LLDPE film in Northern area remains unchanged at CNY9100-9300/ton ($‎‎1237-1264/ton without VAT), all based on EXW China, cash equivalent.

Purchasing activities continue to cool down slightly compared to the previous session, yet, domestic PP and PE inventories fell another 30,000 tons to approximate 850,000 tons as of 29 March 2018. At the current rate of inventories digestion, traders are hoping to see a more stabilised market condition in the near term, however, with the long weekend holiday coming, it is still a question if a rebound is possible.