China Morning Snapshot – 21 February 2019
China Morning Snapshot – 21 February 2019
LL C4 Film PPH Inj PPH Raf
There are little changes on Dalian Commodity Exchange this morning, signaling a need for stronger support before PP and LLDPE contracts could make any breakthrough.
Details on the spot and futures prices are shown in the following table:
|
21 February 2019 |
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 1905 |
CNY 8826 |
USD 1136 |
+CNY 20 |
+USD 3 |
|
|
LLDPE 1905 |
CNY 8695 |
USD 1119 |
-CNY 10 |
-USD 1 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
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|
PPH (East China) |
CNY 8850-8950 |
USD 1139-1152 |
+CNY 100 |
+USD 14 |
|
|
LLDPE (North China) |
CNY 8700-8800 |
USD 1119-1132 |
+CNY 100 |
+USD 14 |
|
|
**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.7 |
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Total inventories at Sinopec and CNPC’s warehouses digested another 45,000 tons day-on-day to 990,000 tons as on 21 February 2019, breaking below 1 million tons threshold.
Trading activities in the local market remain steady and apparently, sellers are very confident in lifting prices following the lower inventories pressure. Transactions continue taking place at the lower end of the overall price range and buyers are negotiating fiercely for discount.
Sources reported that many BOPP plants have not ramped up production rate amid the lack of labor and end product orders.