China Morning Snapshot: 11 April 2018

Dalian Commodity Exchange opened the trading day with large increases, however, retreated toward the break time. By the end of the morning session, May delivery contract for PP only gained CNY11/ton ($2/ton) to CNY8975/ton ($1221/ton without VAT) while LLDPE up CNY55/ton ($9/ton) to CNY9395/ton ($1279/ton without VAT).

Buying interest in domestic spot market remains stable and with a quick reduction in domestic inventories, suppliers lifted spot homo-PP by up to CNY150/ton ($24/ton) from the previous day, bringing prices to CNY‎‎‎‎8900-9100/ton ($‎‎‎1211-1238/ton without VAT).

Meanwhile, LLDPE film firmed up CNY100/ton ($16/ton) in Northern China at CNY9400-9600/ton ($‎‎‎1279-1307/ton without VAT), all based on EXW China, cash equivalent.

Total PP and PE inventories at Sinopec and CNPC fell another 40,000 tons day on day to approximate 800,000 tons as of 11 April 2018. Players are holding positive expectation for the near term market outlook, in spite of the fact the ChinaPlas Exhibition is fast approaching. “The reduction in value added tax starting May, might help to stimulate local demand to a certain extent. We have sold a considerable quantity over the last several days and planning to make replenishment soon,” a trader said.