China Morning Snapshot – 24 May 2018

For the third session in a row, Dalian Commodity Exchange persists on the negative territory. PP contract for September delivery concluded the morning session losing CNY51/ton ($8/ton) to CNY9184/ton ($1228/ton without VAT) while LLDPE decreased CNY80/ton ($13/ton) to CNY9240/ton ($1236/ton without VAT). 

Domestic market is slower, resulted in low inventory digestion rate. Total PP and PE inventories at Sinopec and CNPC’s warehouses fall only 3000 tons from the previous trading day to approximate 717,000 tons as of 24 May 2018. “The correction continue to take place and more cuts shall emerge toward the weekend as suppliers push for month-end target,” a market source said.

At the time this report is published, spot PP and PE offers fell CNY50/ton ($8/ton) compared to the previous trading days. Homo-PP in Eastern China reached CNY9100-9200/ton ($1217-1231/ton without VAT), EXW China, cash equivalent.

Spot LLDPE film in Northern China is traded in the range CNY9450-9600/ton ($1264-1284/ton without VAT), with the same term.