China Morning Snapshot – 22 February 2019
China Morning Snapshot – 22 February 2019
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Dalian Commodity Exchange continues to show mediocre performance on the final trading day of the week, which affected the spot market to a certain extent.
Details on the spot and futures prices are shown in the following table:
|
22 February 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 8790 |
USD 1126 |
-CNY 28 |
-USD 4 |
|
|
LLDPE 1905 |
CNY 8720 |
USD 1117 |
+CNY 20 |
+USD 3 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
|
|
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|
PPH (East China) |
CNY 8850-8950 |
USD 1134-1146 |
Stable |
Stable |
|
|
LLDPE (North China) |
CNY 8650-8800 |
USD 1108-1127 |
-CNY 50 |
-USD 7 |
|
|
**All USD equivalent prices are exclusive of 16% VAT |
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|
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Exchange rate: USD 1 = CNY 6.73 |
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Total inventories at Sinopec and CNPC’s warehouses reduced 40,000 tons from yesterday to 950,000 tons as on 22 February 2019. Inventories might climb back to the 1 million tons threshold over the weekend.
It appears that buyers have made necessary replenishment over the past several trading days and decided to withdraw to the sideline to wait for further discounts. There have been concerns that more imports cargoes are scheduled to arrive in the coming week, which might add pressure to the market, would demand remains soft.