China Morning Snapshot – 01 April 2019
China Morning Snapshot – 01 April 2019
LL C4 Film PPH Inj PPH Raf
On the first trading day of April, Dalian Commodity Exchange poses a rather strong performance. Both PP and LLDPE contracts jumped to the positive territory during the early trading hours.
Details on the spot and futures prices are shown in the following table:
|
1-Apr-19 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
|
Dalian Commodity Exchange (Mid-day closing) |
||||
|
PP 1905 |
CNY 8744 |
USD 1123 |
+CNY 160 |
+USD 24 |
|
LLDPE 1905 |
CNY 8450 |
USD 1086 |
+CNY 90 |
+USD 13 |
|
Spot Domestic Prices (EXW China, Cash equivalent) |
||||
|
PPH (East China) |
CNY 8750-8900 |
USD 1124-1143 |
+CNY 50 |
+USD 7 |
|
LLDPE (North China) |
CNY 8550-8650 |
USD 1098-1111 |
Stable |
Stable |
|
**All USD equivalent prices are exclusive of 16% VAT |
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|
Exchange rate: USD 1 = CNY 6.71 www.commoplast.com |
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Total inventories at Sinopec and CNPC’s warehouses piled up 90,000 tons from last Friday to 930,000 tons as on 01 April 2019.
As the lower VAT rate officially taking effect, Chinese buyers have not shown any abnormal purchasing activities. It appears that both side of the market (buyers and sellers) are monitoring respond from each other before making decision.
“This week is a short trading week due to the Tomb Sweeping Festival on Friday. Speculations on the new VAT rate have already been taking place since late March and we are waiting to see the actual market demand,” a trader said.