China Morning Snapshot – 08 April 2019
China Morning Snapshot – 08 April 2019
Both PP and LLDPE contracts on Dalian Commodity Exchange surge drastically during the early trading hours following the development in the global equity market.
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 |
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|
Dalian Commodity Exchange (Mid-day closing) |
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|
PP 1905 |
CNY 8978 |
USD 1152 |
+CNY 180 |
+USD 27 |
|
|
LLDPE 1905 |
CNY 8585 |
USD 1101 |
+CNY 110 |
+USD 16 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
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|
PPH (East China) |
CNY 9000-9100 |
USD 1155-1167 |
+CNY 200 |
+USD 30 |
|
|
LLDPE (North China) |
CNY 8750-8850 |
USD 1122-1135 |
+CNY 100 |
+USD 15 |
|
|
**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 piled up 120,000 tons throughout the long holiday to 975,000 tons as on 08 April 2019.
Due to tighter supply, sellers decided to implement larger increases on spot homo-PP cargoes, however, customers are showing stiff resistance. “Buyers are demanding for the old prices. We decided to hold firm on the offers due to lack of availability for PP. We think market would have to accept the hike,” a trader said.
It is reported that some producers have postponed the new price announcement hoping to achieve higher level in the coming days.