China Morning Snapshot: 10 April 2018

May delivery contracts for both PP and PE on Dalian Commodity Exchange remain on the firming track throughout the morning session. PP inched CNY27/ton ($4/ton) higher, at CNY8938ton ($1213/ton without VAT). LLDPE increased CNY35/ton ($6/ton) to CNY9320/ton ($1264/ton without VAT).

Spot homo-PP offers in Eastern China added CNY50/ton ($8/ton) day on day to CNY‎‎‎8850-8950/ton ($‎‎1201-1214/ton without VAT).

Meanwhile, LLDPE film remained largely stable in the Northern area at CNY9300-9500/ton ($‎‎1262-1289/ton without VAT), all based on EXW China, cash equivalent.    

Purchasing interest in local ground holds strong which helps in moving total inventories at Sinopec and CNPC warehouses to the pre-holiday level of 840,000 tons, a reduction of 30,000 tons day on day. The strong local market sentiment is lending sufficient support to overseas sellers to lift offers to China, of which both import PP and PE see $10-30/ton hike from the previous week with deals achieved at the new price levels.