China Morning Snapshot – 29 June 2018

Sentiment on Dalian Commodity Exchange remained range bound for the morning session. PP contract for September delivery added CNY28/ton ($4/ton) by the end of the morning session at CNY9144/ton ($1191/ton without VAT) while LLDPE increased CNY10/ton ($2/ton) to CNY9145/ton ($1191/ton without VAT).

At the time this report is published, spot homo-PP in Eastern China remained largely stable at CNY9100-9200/ton ($1185-1198/ton without VAT), EXW China, cash equivalent.

Spot LLDPE film in Northern China stays stable to CNY50/ton ($8/ton) higher than yesterday reaching CNY9200-9350/ton ($1198-1218/ton without VAT) with the same term.

Total inventories at Sinopec and CNPC’s warehouses dropped 40,000 tons day-on-day to approximate 650,000 tons as of 29 June 2018. Distributors are claiming most of the inventories from producers have been pushed to them as the demand from end converters are weak. The recent depreciation of currencies are supporting the overall price level in the domestic market, however, buying interests are still slow. Some traders informed to receive more customers asking for offer level this morning, however deals concluded are limited, meanwhile, some distributors informed that domestic producers are pressuring them to achieve the sales target for the month.