China Morning Snapshot – 18 April 2018

Dalian Commodity Exchange opened on a firm note, however, only LLDPE contract sustain the trend by the end of the morning session, adding CNY10/ton ($2/ton) to CNY9185/ton ($1248/ton without VAT). Meanwhile, PP futures closed with CNY2/ton ($0.3/ton) reduction to CNY8936/ton ($1214/ton without VAT).

Domestic offers remained largely stable compared to yesterday. Spot homo-PP in Eastern China stands at CNY8800-8950/ton ($‎1196-1216/ton without VAT) while LLDPE film in Northern China is ranging CNY‎‎9400-9600/ton ($‎1277-1304/ton without VAT), all based on EXW China, cash equivalent.

Trading activities in domestic ground remain calm as buyers continue to source materials hand-to-mouth basis. Total PP and PE inventories at Sinopec and CNPC warehouses fell only 15,000 tons from the previous day to 825,000 tons as of 18 April 2018. The market has not shown any strong response to the news that People’s Bank of China will cut the reserve-requirement ratio for commercial banks, which ultimately help ease conditions for businesses and individuals. Most buyers are very cautious about fresh buy, hoping to achieve additional discount in the coming days.