China Morning Snapshot – 24 April 2018

Dalian Commodity Exchange recovers slightly from the previous trading day to conclude the morning session at CNY25/ton ($4/ton) higher for PP and CNY60/ton ($10/ton) increased for LLDPE. Both contracts reached CNY8862/ton ($1200/ton without VAT) and CNY9230/ton ($1250/ton without VAT) respectively.

Trading activities in domestic spot market remain sluggish due to the absence of participants, which pushes trader to cuts offers by another CNY50/ton ($8/ton) from the previous trading day to smoothen sales process.

Spot homo-PP offered in Eastern China market in the range CNY8800-8850/ton ($1192-1199/ton without VAT), EXW China, cash equivalent.

Spot LLDPE film in Northern China stands in the range CNY9350-9600/ton ($1266-1300/ton) with the same term.

Total PP and PE inventories at Sinopec and CNPC warehouses reduced 10,000 tons from the previous trading day to approximate 850,000 tons as of 24 April 2018. Market sources fear that more discounts would emerge in the coming days as stock digestion rate slow down, causing bloated inventories among suppliers.