China Morning Snapshot – 11 June 2018

On Dalian Commodity Exchange, September delivery contract for LLDPE remains below PP despite gaining CNY50/ton ($8/ton) from the previous trading day to CNY9340/ton ($1256/ton without VAT). PP futures jumped CNY78/ton ($12/ton) to CNY9380/ton ($1261/ton without VAT) – the highest level since May 2018.  

Trading activities in domestic spot market remain mediocre, though suppliers refrain from giving any further discount on both PP and PE cargoes with the support from stronger futures ground.

At the time this report is published, spot homo-PP in Eastern China sees CNY50/ton ($8/to) increased from last week to CNY9250-9350/ton ($1244-1257/ton without VAT), EXW China, cash equivalent.

Spot LLDPE film in Northern China is unchanged at CNY9300-9400/ton ($1251-1264/ton without VAT) with the same term. 

The monsoon season is causing a heavy flood in Southern China area, which potentially affects demand here. However, players are monitoring further development before making the next move.