China Morning Snapshot – 11 April 2019
China Morning Snapshot – 11 April 2019
LL C4 Film PPH Inj PPH Raf
The positive sentiment during the night trading session did not persist this morning. Both September delivery contracts for PP and LLDPE inched slightly lower, but show limited effect on the spot sentiment.
Details on the spot and futures prices are shown in the following table:
|
11 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 8760 |
USD 1124 |
-CNY 13 |
-USD 2 |
|
|
LLDPE 1909 |
CNY 8520 |
USD 1093 |
-CNY 5 |
-USD 1 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
|
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|
PPH (East China) |
CNY 8900-9050 |
USD 1142-1161 |
Stable |
Stable |
|
|
LLDPE (North China) |
CNY 8700-8800 |
USD 1116-1129 |
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 20,000 tons day-on-day to 880,000 tons as on 11 April 2019.
The inventories digestion rate is slower toward the end of the week and apparently, local producers are taking steps to entice purchasing interest. It is reported that volume discounts are made available today for all grades, which signals a rather flexible stance among local sellers.