China Morning Snapshot – 02 January 2019
China Morning Snapshot – 02 January 2019
LL C4 Film PPH Inj PPH Raf
Dalian Commodity Exchange resumes trading after the long weekend on a rather soft note. The negative result for the first half of the trading day has not affected the offers in the spot market.
Details on the spot and futures prices are shown in the following table:
|
28 December 2018 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
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|
Dalian Commodity Exchange (Mid-day closing) |
|
|||||
|
PP 1905 |
CNY 8520 |
USD 1068 |
-CNY 43 |
-USD6 |
||
|
LLDPE 1905 |
CNY 8525 |
USD 1068 |
-CNY 55 |
-USD8 |
||
|
Spot Domestic Prices (EXW China, Cash equivalent) |
|
|
||||
|
PPH (East China) |
CNY 9050-9100 |
USD 1134-1140 |
Stable |
Stable |
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|
LLDPE (North China) |
CNY 9000-9200 |
USD 1128-1153 |
Stable |
Stable |
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|
**All USD equivalent prices are exclusive of 16% VAT |
|
|
|
|||
|
Exchange rate: USD 1 = CNY 6.88 |
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Total inventories at Sinopec and CNPC’s warehouses piled up 165,000 tons from the last weekend to 685,000 tons as on 02 January 2019.
Trade movement on the first trading day of the year is not very active. Buyers prefer to adopt a wait and see stance for clearer direction before jumping into replenishment.
“However, we remain hopeful that market sentiment would improve in the coming days. Customers might come back to stock up materials before going off for the Lunar New Year,” a trader said, while adding that trading activities in the first half of the month is expected to be more active than the second half.