China Morning Snapshot – 28 March 2019
China Morning Snapshot – 28 March 2019
LL C4 Film PPH Inj PPH Raf
Futures contracts for both PP and LLDPE quick falling back to the negative zone this morning dragging along the sentiment in the spot ground.
Details on the spot and futures prices are shown in the following table:
|
28 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 8532 |
USD 1093 |
-CNY 81 |
-USD 12 |
|
|
LLDPE 1905 |
CNY 8350 |
USD 1070 |
-CNY 55 |
-USD 8 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
|
|
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|
PPH (East China) |
CNY 8750-8900 |
USD 1121-1140 |
Stable |
Stable |
|
|
LLDPE (North China) |
CNY 8550-8650 |
USD 1095-1108 |
-CNY 50 |
-USD 7 |
|
|
**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.73 |
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Total inventories at Sinopec and CNPC’s warehouses digested another 35,000 tons from the previous trading day to 825,000 tons as on 28 March 2019.
The quicker pace of inventories digestion suggest that local suppliers might attempt to limit any price reductions in the coming days as a result of lower VAT rate. At the moment, customers remain active at the lower end of the overall price range while aggressively negotiate for cargoes priced at the upper end.