China Morning Snapshot – 15 April 2019
China Morning Snapshot – 15 April 2019
LL C4 Film PPH Inj PPH Raf
The firming trend observed during the previous night session did not sustain throughout this morning. Both PP and LLDPE contracts for September delivery fell into the negative territory by the end of the morning session.
Details on the spot and futures prices are shown in the following table:
|
15 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 8725 |
USD 1121 |
-CNY 41 |
-USD 6 |
|
|
LLDPE 1909 |
CNY 8485 |
USD 1090 |
-CNY 35 |
-USD 5 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
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|
PPH (East China) |
CNY 8900-9000 |
USD 1143-1156 |
-CNY 50 |
-USD 7 |
|
|
LLDPE (North China) |
CNY 8650-8750 |
USD 1111-1124 |
Stable |
Stable |
|
|
**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 piled up 85,000 tons from last Friday to 960,000 tons as on 15 April 2019.
The weakening futures market is hurdling transactions in the spot ground. While traders are offering small discounts, customers tend to negotiate for a larger cut based on the piling inventories levels.