China Morning Snapshot – 15 May 2018

The softening trend on Dalian Commodity Exchange persists this morning. PP contract entered the break-time losing CNY60/ton ($9/ton) from yesterday to CNY9215/ton ($1251/ton without VAT). LLDPE contract reduced CNY60/ton ($9/ton) to CNY9440/ton ($1282/ton without VAT).

There has not been any major improvement in term of trading activities in the domestic ground. Buyers continue to resist the constant firming trend amid soft end-product businesses. “We are open to negotiation and yet, our customers remain very cautious to place bids. We do expect further discount to emerge in the coming days as local producers need to achieve some sales targets,” a trader informed.

Supplier started offering up to CNY100/ton ($16/ton) discount on PP cargoes in Eastern China, sending latest opened offer to CNY9150-9250/ton ($1242-1256/ton without VAT), EXW China, cash equivalent.

In Northern area, LLDPE film prices hold steady in the range CNY9700-9800/ton ($1317-1330/ton without VAT) with the same term.