China Morning Snapshot – 23 May 2019
China Morning Snapshot – 23 May 2019
Following the international equity market, Dalian Commodity Exchange plunged into the negative territory this morning, which also put a break on the uptrend in the domestic spot market.
Details on the spot and futures prices are shown in the following table:
|
23 May 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 8304 |
USD 1063 |
-CNY 106 |
-USD 15 |
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|
LLDPE 1909 |
CNY 7825 |
USD 1002 |
-CNY 115 |
-USD 17 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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|
PPH (East China) |
CNY 8500-8650 |
USD 1089-1108 |
-CNY 50 |
-USD 7 |
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|
LLDPE (North China) |
CNY 7850-8100 |
USD 1005-1037 |
-CNY 100 |
-USD 14 |
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**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.91 |
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Total inventories at Sinopec and CNPC’s warehouses reduced 15,000 tons from yesterday to 750,000 tons as on 23 May 2019.
Inventories at major local producers’ warehouses have dipped below the psychological mark, yet local suppliers are not confident enough to maintain firm stance on the spot offers. Instead, a discount of CNY50-100/ton ($7-14/ton) immediately emerges as the futures trading weaken.