China Morning Snapshot – 24 May 2019
China Morning Snapshot – 24 May 2019
Trading activities on Dalian Commodity Exchange remain weak this morning with both PP and LLDPE contract persist in the red zone.
Details on the spot and futures prices are shown in the following table:
|
24 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 8212 |
USD 1052 |
-CNY 111 |
-USD 16 |
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|
LLDPE 1909 |
CNY 7770 |
USD 995 |
-CNY 80 |
-USD 12 |
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|
Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8400-8550 |
USD 1076-1095 |
-CNY 100 |
-USD 14 |
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|
LLDPE (North China) |
CNY 7750-8050 |
USD 993-1031 |
-CNY 50-100 |
-USD 7-14 |
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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 remain unchanged from the previous trading day at 750,000 tons as on 24 May 2019.
The steep reduction in the energy complex has negatively affected the sentiment in both spot and future market. Sources reported that customers have mostly stocked up comfortable inventories over the past trading days, hence prefer to wait and see on the sideline.
Confidence level fort he near-term outlook is falling. Sources fear that more reduction would emerge in the coming week for both PP and PE in the local ground.