China Morning Snapshot: 30 March 2018

Dalian Commodity Exchange traded range bound in the morning session. May delivery contract for PP increased CNY76/ton ($12/ton) to CNY8698/ton ($1186/ton without VAT) and LLDPE up CNY55/ton ($9/ton) to CNY9230/ton ($1258/ton without VAT).

Thanks to a visible pick up in demand in the local ground throughout the week, traders have the support to implement an increase of CNY50-100/ton ($8-16/ton) on spot PP and PE cargoes. Latest offers for homo-PP in Eastern China stand at CNY‎‎‎8600-8650/ton ($‎‎1172-1179/ton without VAT) while LLDPE film in Northern China at CNY9150-9300/ton ($‎‎1247-1268/ton without VAT), all based on EXW China, cash equivalent.

With firmer stance from suppliers, market finds it hard to obtain cargoes at lower prices; however, buyers are still actively looking for materials at discounts. Total PP and PE inventories at major domestic producers fell another 20,000 tons to 830,000 tons as of 30 March 2018. This development has reinforced supplier’s hope for a rebound in the near term.