China Morning Snapshot – 22 April 2019

September delivery contracts for PP and LLDPE on Dalian Commodity Exchangeinch higher this morning thanks to the support from the energy complex.

Details on the spot and futures prices are shown in the following table: 

Total inventories at Sinopec and CNPC’s warehouses piled up 55,000 tons throughout the weekend to 955,000 tons as on 22 April 2019. 

As expected, local producers offers minor discount on LLDPE film cargoes due to slower demand from the agricultural film sector. Trading activities in the domestic spot market is steady, however, buyers constantly asking for additional discounts, citing the persistently bloated inventories levels.

Chinese players will be away for Labor days from 1-4 May, from which traders are putting more effort to stimulate pre-holiday replenishment activities. Inventories pressure in the post holiday term might increase if sellers are unable to deplete materials before the holidays.