China Morning Snapshot – 26 April 2018

Dalian Commodity Exchanged ended the first half of the trading day on a firm note. September delivery contract for PP gained CNY75/ton ($12/ton) fro the previous trading session to CNY8970/ton ($1215/ton without VAT). The same contract for LLDPE film added CNY50/ton ($8/ton) to reach CNY9285/ton ($1258/ton without VAT).

There have not been any major changes in term of trading activities amid the absence of key players amid ChinaPlas Exhibition. However, thanks to stronger futures contracts, spot traders are encouraged to implement CNY50/ton ($8/ton) hike on both PP and PE parcels.

Spot homo-PP traded in Eastern China in the range CNY8850-8950/ton ($1199 – 1212/ton without VAT), EXW China, cash equivalent.

Spot LLDPE film traded in Northern China at CNY9400-9600/ton ($1273 – 1300/ton without VAT) with the same payment and delivery term.

The general sentiment in China might remain slow throughout the remaining days of April and May outlook would become clearer after the labour day holiday. However, sources are rather optimistic given the lack of sales pressure.