China Morning Snapshot – 05 June 2018

Dalian Commodity Exchange experienced highly volatile trading hours this morning and entered break-time at a rather soft note. PP contract for September delivery only gained CNY4/ton ($0.6/ton) from the previous day to CNY9289/ton ($1249/ton without VAT). LLDPE contract loses CNY5/ton ($0.6/ton) to CNY9295/ton ($1250/ton without VAT). 

Sentiment in spot ground is heavy. Sales are not strong, sources said, citing that buyers are very conservative about making large purchases amid weak end product business and uncertain near-term outlook. In the meantime, there is no sign that suppliers would concede to any large discount just to deplete quantity.

At the time this report is published, spot homo-PP in Eastern China is traded at CNY9150-9250/ton ($1231-1244/ton without VAT), EXW China, cash equivalent.

Spot LLDPE film in Northern China is at CNY9350-9500/ton ($1257-1278/ton without VAT) with the same term.

Supply tightness in local China might gradually be eased, as several plants that were off-line for maintenance would resume operation toward the end of the month.
“That is something we are watching out for, and at the moment, we prefer to source materials on the hand-to-mouth basis,” a BOPP sheet maker added.