China Morning Snapshot – 28 May 2018

Dalian Commodity Exchange on the first trading day of the week continue weak trend for the morning session September delivery contract for PP ended the first half of the trading day losing CNY118/ton ($18/ton) to CNY9055/ton ($1222/ton without VAT) while LLDPE reduced CNY65/ton ($10/ton) to CNY9170/ton ($1237/ton without VAT).

Spot homo-PP in domestic market poses CNY50-100/ton ($8-16/ton) softer than end of last week, meanwhile LLDPE stayed stable to CNY50/ton ($8/ton).

Spot LLDPE film in Northern China is reported at CNY9400-9600/ton ($1268-1295/ton without VAT) while spot homo-PP in Eastern China hold steady at CNY9000-9150/ton ($1214-1234/ton without VAT), EXW China, cash equivalent.

Total PP and PE inventories at Sinopec and CNPC’s warehouses pile up 70,000 tons from last Friday to approximate 800,000 tons as of 28 May 2018. Overall market sentiment is slow this morning with the significant weak trend of futures market, meanwhile players are concern on recent reduction of crude price which expected to impact toward market buying interests in the near term, especially during the traditional slow season. Meanwhile, comparatively there are still slightly better buying interests for PP compared to PE among traders, whereby players informed that recent inventory level for LL and LD at the warehouses are still ample.