China Morning Snapshot: 03 April 2018

Dalian Commodity Exchange remains firm, however, no real fame. May delivery contract for PP increased CNY29/ton ($5/ton) to CNY8811/ton ($1197/ton without VAT) and LLDPE up CNY5/ton ($1/ton) to CNY9270/ton ($1260/ton without VAT).

Homo-PP in Eastern China gained additional CNY50/ton ($8/ton) from the previous day to CNY‎‎‎8700-8800/ton ($‎‎1182-1196/ton without VAT).
LLDPE film in Northern China stands in the range CNY9250-9400/ton ($‎‎1257-1277/ton without VAT), up CNY50-100/ton ($8-16/ton), all based on EXW China, cash equivalent.

Strong purchasing activities help digest local PP and PE inventories by 40,000 tons in a single day, bringing the level down to 880,000 tons as of 3 April 2018. Demand might gradually cool off towards the end of the week as the market is entering the long weekend holiday. In the meantime, sentiment remains positive today, especially for HDPE injection and LDPE heavy duty as the beverage packaging sector is entering the high demand season.