China Morning Snapshot – 29 March 2019
China Morning Snapshot – 29 March 2019
LL C4 Film PPH Inj PPH Raf
Both PP and LLDPE contracts on Dalian Commodity Exchange settled higher by the end of the morning session after rather rocky trading hours.
Details on the spot and futures prices are shown in the following table:
|
29 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 8626 |
USD 1093 |
+CNY 69 |
+USD 12 |
|
|
LLDPE 1905 |
CNY 8395 |
USD 1070 |
+CNY 25 |
+USD 8 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
|
|
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|
PPH (East China) |
CNY 8750-8850 |
USD 1121-1140 |
-CNY 50 |
-USD 7 |
|
|
LLDPE (North China) |
CNY 8550-8650 |
USD 1095-1108 |
Stable |
Stable |
|
|
**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 dropped 15,000 tons from yesterday to 820,000 tons as on 29 March 2019. (Correction: Total inventories were at 835,000 tons on 28 March 2019).
Stronger futures market does not immediately stimulate the trading activities in the spot market this morning, instead, customers continue sourcing cargoes at the lower end of the overall price range while demanding for some discounts.
“We are offering some discounts on both spot PP and PE cargoes to smoothen sales and maintain cash-flow. Demand is steady but lack of steam,” a trader said.