China Morning Snapshot – 27 March 2019
China Morning Snapshot – 27 March 2019
Futures contracts for both PP and LLDPE on Dalian Commodity Exchange concluded the first half of the trading day on the green side but the gains are rather subtle.
Details on the spot and futures prices are shown in the following table:
|
27 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 8625 |
USD 1106 |
+CNY 29 |
+USD 4 |
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|
LLDPE 1905 |
CNY 8420 |
USD 1080 |
+CNY 15 |
+USD 2 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8750-8900 |
USD 1122-1142 |
Stable |
Stable |
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|
LLDPE (North China) |
CNY 8600-8650 |
USD 1103-1110 |
Stable |
Stable |
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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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Total inventories at Sinopec and CNPC’s warehouses digested 40,000 tons day-on-day to 860,000 tons as on 27 March 2019. (Correction: Total inventories on 26 March was at 900,000 tons).
Sentiment in the domestic spot market remains steady, with players are working to conclude transactions for March delivery. It is reported that suppliers are facing lower inventories pressure for PP than PE, which could potentially support the current stable to firmer trend in the local ground.