China Morning Snapshot: 04 April 2018

Dalian Commodity Exchange starts the trading day on rather soft notes, however, managed to recover most of the loses toward the break time. PP contract concluded morning session with CNY34/ton ($5/ton) increased to CNY8836/ton ($1201/ton without VAT) and LLDPE down CNY55/ton ($9/ton) to CNY9205/ton ($1251/ton without VAT).

Trading activities in local ground remain largely stable from the previous trading, and so spot PP and PE prices. Homo-PP in Eastern China stands at CNY‎‎‎8700-8800/ton ($‎‎1182-1196/ton without VAT).
LLDPE film in Northern China traded in the range CNY9250-9400/ton ($‎‎1257-1277/ton without VAT), all based on EXW China, cash equivalent.

Total PP and PE inventories at major domestic producers’ warehouses fell another 50,000 tons to approximate 830,000 tons as of 4 April 2018. Converters are still out looking for best deals and with reduced sales pressure, traders are rather optimistic about the outlook for the coming week.