China Morning Snapshot – 11 May 2018

Dalian Commodity Exchange continues showing the irresponsiveness to the global crude oil market by remaining on a soft note throughout the morning session. September delivery contract for PP entered the break-time losing CNY CNY13/ton ($2/ton) from the previous day to CNY9242/ton ($1255/ton without VAT). LLDPE contract reduced CNY15/ton ($2/ton) to reach CNY9505/ton ($1290/ton without VAT).  

Local buyers have been resisting the continuous firming trend in the spot market, indicating a possibility that market might have reached the cyclical peak. Aim to attract buying interest, traders are offering a CNY50/ton discount on homo-PP, bringing latest price list to CNY9150-9300/ton ($1242-1263/ton without VAT), EXW China, cash equivalent in Eastern China.

In the Northern market, LLDPE film mostly stable in the range CNY9650-9800/ton ($1310-1330/ton without VAT) with the same payment and delivery term.  

“It is difficult to attract deal towards the end of the week though we have indicated the willingness to negotiate with serious buyers. Market might face a minor correction in the coming week and we hope that could draw buyers back to the market,” a trader said.