China Morning Snapshot: 02 April 2018

Dalian Commodity Exchange has yet to regain any real flame, however, traded range-bound in the morning session. May delivery contract for PP increased CNY46/ton ($7/ton) to CNY8747/ton ($1189/ton without VAT) and LLDPE up CNY20/ton ($3/ton) to CNY9255/ton ($1258/ton without VAT).

In contrary, spot market continues to recover from the post-holiday dullness. Homo-PP in Eastern China sees CNY50-100/ton up from last Friday, to be traded at CNY‎‎‎8650-8750/ton ($‎‎1175-1189/ton without VAT).

LLDPE film in Northern China shares similar situation, standing in the range CNY9200-9300/ton ($‎‎1250-1264/ton without VAT), all based on EXW China, cash equivalent.

Deals are satisfactory, multiple sources reported. While traders are rushing to make replenishment believing that market has hit the bottom, converters are also out looking for cargoes to cover production during the long weekend holiday ahead. Total PP and PE inventories at domestic producers’ warehouses surged to 920,000 tons as of 2 April 2018, yet sentiment remains strong. The market is just not sure about the sustainability of the current trend.