China Morning Snapshot – 15 March 2019
China Morning Snapshot – 15 March 2019
May delivery contract for both PP and LLDPE shows little response to the government’s official announcement on the reduction of VAT rate but rather affected by the uncertain trade agreement between China and the USA.
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15 March 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 8675 |
USD 1134 |
-CNY 130 |
-USD 1 |
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LLDPE 1905 |
CNY 8565 |
USD 1113 |
-CNY 90 |
-USD 5 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8750-8900 |
USD 1137-1143 |
-CNY 100 |
-USD 14 |
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LLDPE (North China) |
CNY 8650-8800 |
USD 1118-1131 |
-CNY 50 |
-USD 7 |
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**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.72 |
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Details on the spot and futures prices are shown in the following table:
Total inventories at Sinopec and CNPC’s warehouses reduced 10,000 tons from the previous trading day to 930,000 tons as on 15 March 2019.
Players have not responded to the VAT rate cut starting 1 April 2019 and customers remain very conservative about making large purchases. “Now that the implementation date is announced, customers might postpone purchases to take advantage of the VAT rate reduction later. In the immediate term, market might be very slow,” a trader said.