China Morning Snapshot – 10 April 2019
China Morning Snapshot – 10 April 2019
LL C4 Film PPH Raf
September delivery contracts for PP and LLDPE begin the trading day on a soft note, an extension from last night’s trend, however, managed to recover toward the break time.
Details on the spot and futures prices are shown in the following table:
|
10 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 1909 |
CNY 8790 |
USD 1129 |
+CNY 3 |
+USD 2 |
|
|
LLDPE 1909 |
CNY 8530 |
USD 1096 |
+CNY 10 |
+USD 2 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
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|
PPH (East China) |
CNY 8900-9050 |
USD 1143-1163 |
-CNY 50 |
-USD 7 |
|
|
LLDPE (North China) |
CNY 8700-8800 |
USD 1118-1131 |
Stable |
Stable |
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|
**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.71 |
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Total inventories at Sinopec and CNPC’s warehouses digested 30,000 tons from the previous day to 900,000 tons as on 10 April 2019.
The previous surge in spot PP prices is now facing stiff resistance from buyers. Traders decided to offer small discount to entice purchases, though buyers continue negotiating fiercely regardless of the limited supply condition in the import ground. Players reported seeing better transactions for PE than PP, which encourage expectation of continued firming trend for this grade.