China Morning Snapshot - 10 December 2018
China Morning Snapshot - 10 December 2018
LL C4 Film PPH Raf
BothPP and LLDPE contracts on Dalian Commodity Exchange remain much range bound in the first half of the trading day. The lack of momentum has encouraged domestic spot traders to offer some discounts on homo-PP cargoes, however, the sentiment is rather soft.
Details on the spot and futures prices are shown in the following table:
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10 December 2018 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
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Dalian Commodity Exchange (Mid-day closing) |
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PP 1901 |
CNY 9039 |
USD 1131 |
-CNY 94 |
-USD14 |
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|
LLDPE 1905 |
CNY 8500 |
USD 1064 |
+CNY 40 |
+USD6 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 9450-9600 |
USD 1182-1201 |
-CNY 50 |
-USD7 |
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LLDPE (North China) |
CNY 9300-9450 |
USD 1164-1182 |
+CNY 50-100 |
+USD7-14 |
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**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.89 |
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Total inventories at Sinopec and CNPC’s warehouses piled up 75,000 tons from last Friday to 650,000 tons as on 10 December 2018.
There are very limited movements in the domestic spot market on the first trading day of the week. Traders are complaining that customers are mostly wait and see on the sideline after replenished comfortable stock in the previous week.
“The macro environment is not very conducive to build high stock. In the meantime, we do not expect local suppliers to cut prices too steeply now that inventories pressure is not as strong as it was last month,” a local trader reported.