China Morning Snapshot – 13 April 2018

Dalian Commodity Exchange lingers on the green zone throughout the morning session. September delivery contract for PP added only CNY11/ton ($2/ton) from the previous day to CNY9047/ton ($1227/ton without VAT) while LLDPE contract gained CNY35/ton ($5/ton) to CNY9325/ton ($1265/ton without VAT).

Sentiment in the domestic spot market is getting calmer by the end of the week and the actual transaction becomes thin. Suppliers continue to implement CNY50-100/ton ($8-16/ton) price cuts on both spot PP and PE to entice demand. 

Spot homo-PP in Eastern China traded at CNY8850-8950/ton ($1200-1214/ton without VAT) and LLDPE film in Northern China is ranging CNY‎9400-9650/ton ($1275-1309/ton without VAT), all based on EXW China, cash equivalent.

Total PP and PE inventories at Sinopec and CNPC pile up 10,000 tons from the previous trading day to approximate 790,000 tons as of 13 April 2018. Sources reported that commercial inventories at trader and private producers remain high, which might weight on the sentiment in the near term. 

“We have replenished good quantity over the past week and prefer to wait on the sideline at the moment. ChinaPlas is fast approaching while May is the traditional low demand season. It is wise to be cautious about keeping high stock,” a converter said.