China Morning Snapshot – 17 April 2018

Dalian Commodity Exchange extended the weakening trend throughout the morning session to enter the break time with CNY52/ton ($8/ton) reduction on PP contract to CNY8952/ton ($1218/ton without VAT). LLDPE contract loses CNY40/ton ($6/ton) to CNY9195/ton ($1251/ton without VAT).

There has been a small discount of CNY50/ton ($8/ton) on both spot PP and PE in local ground given the slower buying interest. Spot homo-PP in Eastern China stands at CNY8800-8950/ton ($‎1198-1218/ton without VAT) while LLDPE film in Northern China is ranging CNY‎‎9400-9600/ton ($‎1279-1307/ton without VAT), all based on EXW China, cash equivalent.

Domestic PP and PE inventories at major producers’ warehouses reduced 20,000 tons to approximate 840,000 tons as of 17 April 2018. Traders claimed to have achieved some deals after the discount; however, the sentiment is not as strong as it was last week. “Buyers return to the hand-to-mouth purchasing strategies. However, inventories pressure is rather minor, and hence, local producers might avoid cutting prices too deep,” a trader commented.