China Morning Snapshot – 14 May 2018

Futures trading on Dalian Commodity Exchange regains some strength on the first trading day of the week. PP contract entered the break-time earning CNY46/ton ($7/ton) from last week to CNY9323/ton ($1268/ton without VAT). LLDPE contract added CNY40/ton ($6/ton) to CNY9540/ton ($1297/ton without VAT).

Domestic market remains calm though stronger futures market encouraged traders to hold firmer stance on spot offers. Homo-PP cargoes in Eastern China added CNY50/ton ($8/ton) from last week to CNY9200-9350/ton ($1251-1271/ton without VAT), EXW China, cash equivalent. In contrast, LLDPE film in Northern China loses CNY50/ton ($8/ton) to CNY9600-9800/ton ($1305-1333/ton without VAT).     

Transaction is thin as buyers are resisting higher prices. Sources are complaining about the aggravated weakening buying activities, from which several traders have started offering CNY30/ton ($5/ton) discount on deals to smoothen sales process. “Customers only purchase based on need. We are taking a cautious stance to monitor further development before making any decision,” a trader said.