China Morning Snapshot – 04 April 2019
China Morning Snapshot – 04 April 2019
May delivery contracts for both PP and LLDPE loose steam towards the end of the week and plunge into the negative territory this morning.
Details on the spot and futures prices are shown in the following table:
|
04 April 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 8771 |
USD 1127 |
-CNY 54 |
-USD 8 |
|
|
LLDPE 1905 |
CNY 8460 |
USD 1087 |
-CNY 55 |
-USD 8 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
|
|
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|
PPH (East China) |
CNY 8800-8900 |
USD 1131-1143 |
Stable |
Stable |
|
|
LLDPE (North China) |
CNY 8650-8750 |
USD 1111-1124 |
+CNY 50 |
+USD 7 |
|
|
**All USD equivalent prices are exclusive of 16% VAT |
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|
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Exchange rate: USD 1 = CNY 6.71 |
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Total inventories at Sinopec and CNPC’s warehouses digested20,000 tons from the previous trading day to 850,000 tons as on 04 April 2019.
Trading activities remain steady in the local ground and despite the recent firming offers; it appears that domestic homo-PP cargoes are still more competitive than imports. Chinese buyers are off on the final trading day of the week for the Tomb Sweeping Festival, and would only resume working on 8 April 2019.
“We do hope to see better market condition next week. Would demand remains soft, local market might face the bloated inventories levels again,” a trader said.