China Morning Snapshot – 20 March 2019
China Morning Snapshot – 20 March 2019
HD Film LD Film LL C4 Film PPH Raf
May delivery contract for PP and LLDPE on Dalian Commodity Exchange started showing signs of stabilisation this morning. Spot market takes this as a positive indication and adopt a firmer stance on the prices.
Details on the spot and futures prices are shown in the following table:
|
20 March 2019 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
|
|
Dalian Commodity Exchange (Mid-day closing) |
|
||||
|
PP 1905 |
CNY 8516 |
USD 1094 |
+CNY 8 |
+USD 1 |
|
|
LLDPE 1905 |
CNY 8370 |
USD 1075 |
+CNY 15 |
+USD 2 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
|
|
|||
|
PPH (East China) |
CNY 8650-8750 |
USD 1111-1124 |
+CNY 50 |
+USD 7 |
|
|
LLDPE (North China) |
CNY 8550-8650 |
USD 1098-1111 |
Stable |
Stable |
|
|
**All USD equivalent prices are exclusive of 16% VAT |
|
|
|
||
|
Exchange rate: USD 1 = CNY 6.71 |
|||||
Total inventories at Sinopec and CNPC’s warehouses digested 20,000 tons day on day to 970,000 tons as on 20 March 2019.
Spot sentiment remains steady and buyers are sourcing cargoes priced at the lower end of the overall range. Traders are reporting that customers mostly buying hand-to-mouth basis to wait for potential discounts that might come with the new VAT rate.
“Inventories levels at producer’s side remain high. At this rate, PP and PE stocks at Sinopec and CNPC’s warehouses might surge to 1 millions tons again by the month end. That is why we do no expect to see any drastic price hike in the near term,” a buyer commented.