China Morning Snapshot – 14 January 2019
China Morning Snapshot – 14 January 2019
LL C4 Film PPH Inj PPH Raf
Dalian Commodity Exchange started the first trading day of the week on a firm note but shred all the gains by the break-time, sending the May delivery contract for PP to the negative zone.
Details on the spot and futures prices are shown in the following table:
|
14 January 2019 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
|
|
Dalian Commodity Exchange (Mid-day closing) |
|
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|
PP 1905 |
CNY 8600 |
USD 1109 |
-CNY 69 |
-USD 10 |
|
|
LLDPE 1905 |
CNY 8565 |
USD 1093 |
+CNY 5 |
+USD 1 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
|
|
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|
PPH (East China) |
CNY 9200-9300 |
USD 1173-1186 |
+CNY 50-100 |
+USD7-15 |
|
|
LLDPE (North China) |
CNY 9000-9200 |
USD 1148-1173 |
Stable |
Stable |
|
|
**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.76 |
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Total inventories at Sinopec and CNPC’s warehouses piled up 45,000 tons over the weekend to 605,000 tons as on 14 January 2019.
Buyers are actively asking for new offers but decided not to immediately jump into deals following the softer sentiment in futures trading. Sources believed that this week would be the crucial time for the pre-Lunar New Year replenishment, which supports local producers’ firm price decision.