China Morning Snapshot – 05 March 2019
China Morning Snapshot – 05 March 2019
LL C4 Film PPH Inj PPH Raf
Dalian Commodity Exchange retreated to the red zone this morning, ending the drastic surge in the previous session.
Details on the spot and futures prices are shown in the following table:
|
04 March 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 8885 |
USD 1143 |
-CNY 15 |
-USD 2 |
|
|
LLDPE 1905 |
CNY 8720 |
USD 1122 |
-CNY 45 |
-USD 7 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
|
|
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|
PPH (East China) |
CNY 8850-8900 |
USD 1139-1145 |
+CNY 100 |
+USD 15 |
|
|
LLDPE (North China) |
CNY 8800-8900 |
USD 1132-1145 |
+CNY 50-100 |
+USD 7-15 |
|
|
**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.70 |
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Total inventories at Sinopec and CNPC’s warehouses reduced 45,000 tons from the previous trading day to 955,000 tons as on 05 March 2019.
Trading activities in the local market remain steady, however, buyers continue requesting for discounts, ignoring supplier’s effort in lifting prices. In some degree, the sentiment is brightened with the news that the government is planning to reduce value added tax (VAT) rate for manufacturing sector by 3% to 13%, but no exact implementation date is revealed. Sources are monitoring this issue very closely.