China Morning Snapshot – 29 April 2019
China Morning Snapshot – 29 April 2019
Sentiment on Dalian Commodity Exchange remains sluggish this morning. Both PP and LLDPE contracts for September delivery traded negatively throughout the early hours.
Details on the spot and futures prices are shown in the following table:
|
29 April 2019 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
|
|
Dalian Commodity Exchange (Mid-day closing) |
|
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|
PP 1909 |
CNY 8595 |
USD 1129 |
-CNY 8 |
-USD 1 |
|
|
LLDPE 1909 |
CNY 8280 |
USD 1087 |
-CNY 20 |
-USD 3 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
|
|
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|
PPH (East China) |
CNY 8750-8850 |
USD 1121-1134 |
Stable |
Stable |
|
|
LLDPE (North China) |
CNY 8300-8450 |
USD 1090-1109 |
-CNY 50 |
-USD 7 |
|
|
**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.74 |
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China market was working on Sunday, 28 April as a replacement for the Labour Day Holiday. Total PP and PE inventories at Sinopec and CNPC’s warehouses drop 30,000 tons from the previous day to 875,000 tons as on 29 April 2019.
Market is entering the holiday mood and it seems that customers are not very eager to keep high inventories ahead of the Labour Day. The continued softening spot offers might persist in the near term, sources said and potentially undermine the firming trend in the import ground.
“Players are waiting on the sideline. Sentiment is not expected to improve until after the holiday,” a source said.