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China Morning Snapshot – 06 March 2019China Morning Snapshot – 06 March 2019 |
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There are very limited movements on Dalian Commodity Exchange despite the positive announcement from the government regarding the tax reduction.
Details on the spot and futures prices are shown in the following table:
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04 March 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 1905 |
CNY 8898 |
USD 1141 |
+CNY 5 |
+USD 1 |
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LLDPE 1905 |
CNY 8760 |
USD 1124 |
+CNY 30 |
+USD 4 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8900-9000 |
USD 1142-1155 |
+CNY 50-100 |
+USD 7-15 |
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LLDPE (North China) |
CNY 8800-8900 |
USD 1129-1142 |
Stable |
Stable |
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**All USD equivalent prices are exclusive of 16% VAT |
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Exchange rate: USD 1 = CNY 6.72 |
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Total inventories at Sinopec and CNPC’s warehouses reduced 20,000 tons day-on-day to 935,000 tons as on 06 March 2019.
While there are still no details on the implementation of the value added tax reduction, players are speculating that the new tax cut would take place in May. The 3% cut in VAT would support demand from the manufacturing sector, sources expected.
Purchasing activities are concentrating on LLDPE film in Northern market while buyers remain cautious about new replenishment for other grades. Healthy buying interest for LLDPE film would support the PE market in general despite the recent drop in ethylene costs.
Country
China
