China Morning Snapshot – 03 January 2019
China Morning Snapshot – 03 January 2019
Futures contract for both PP and LLDPE on Dalian Commodity Exchange continue enduring the weakening trend during the first half of the trading day. However, spot sellers elected to maintain prices unchanged from the previous day.
Details on the spot and futures prices are shown in the following table:
|
03 January 2019 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
|
|
Dalian Commodity Exchange (Mid-day closing) |
|
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|
PP 1905 |
CNY 8503 |
USD 1065 |
-CNY 29 |
-USD4 |
|
|
LLDPE 1905 |
CNY 8470 |
USD 1061 |
-CNY 60 |
-USD9 |
|
|
Spot Domestic Prices (EXW China, Cash equivalent) |
|
|
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|
PPH (East China) |
CNY 9050-9100 |
USD 1134-1140 |
Stable |
Stable |
|
|
LLDPE (North China) |
CNY 9000-9200 |
USD 1128-1153 |
Stable |
Stable |
|
|
**All USD equivalent prices are exclusive of 16% VAT |
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|
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Exchange rate: USD 1 = CNY 6.88 |
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Total inventories at Sinopec and CNPC’s warehouses digested 20,000 tons from the previous day to 670,000 tons as on 03 January 2019. (Correction: Total inventories at major local producers’ warehouses were at 690,000 tons on 2 January 2019)
Trader reported a better number of transactions on the second trading day of the week, however the sentiment is not as strong as many expected. “Customers are still very cautious. We hope to see improved sentiment in the coming week,” a trader commented.
The coming week would be a crucial week to local supplier, which buyers might make pre-Lunar New Year replenishment. “We are on the wait and see now,” another market source added.