China Morning Snapshot – 15 January 2019
China Morning Snapshot – 15 January 2019
LL C4 Film PPH Inj PPH Raf
May delivery contract for both PP and LLDPE on Dalian Commodity Exchange remained weak throughout the morning session, which also affects the spot prices.
Details on the spot and futures prices are shown in the following table:
|
15 January 2019 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
|
|
Dalian Commodity Exchange (Mid-day closing) |
|
||||
|
PP 1905 |
CNY 8633 |
USD 1100 |
-CNY 19 |
-USD 3 |
|
|
LLDPE 1905 |
CNY 8575 |
USD 1092 |
-CNY 30 |
-USD 4 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
|
|
|||
|
PPH (East China) |
CNY 9150-9250 |
USD 1165-1178 |
-CNY 50 |
-USD 7 |
|
|
LLDPE (North China) |
CNY 9000-9150 |
USD 1146-1165 |
-CNY 50 |
-USD 7 |
|
|
**All USD equivalent prices are exclusive of 16% VAT |
|
|
|
||
|
Exchange rate: USD 1 = CNY 6.77 |
|||||
Total inventories at Sinopec and CNPC’s warehouses digested25,000 tons from the prior trading day to 580,000 tons as on 15 January 2019.
Buyers show significant interest in cargoes priced at the lower end of the overall price range but rather reluctant to other offers. Sources expressed the expectation that local producers might continue giving small discount in the coming days in order to deplete more inventories before the market slows down next week. This comes as several distributors reported to have only achieved 50% of the monthly sales target until this moment.