China Morning Snapshot: 30 January 2018

May delivery contracts for both PP and PE poses weak trend especially toward the end of the morning session. LLDPE futures showed a CNY80/ton ($13/ton) decrease at CNY9920/ton ($1339/ton without VAT) while PP contract reduced CNY48/ton ($8/ton), reaching CNY9547/ton ($1289/ton without VAT).

Spot homo-PP offers in Eastern China remain largely stable in the range of CNY‎‎9450-9550/ton ($‎1276-1289/ton without VAT), EXW China, cash equivalent.

Meanwhile, LLDPE film offers in Northern China also rollover at CNY9750-9900/ton ($‎1316-1337/ton without VAT), with the same term.

Overall market sentiment were slow in the morning, while some traders informed that some manufacturers still trying to place some final rounds of orders before entering holidays, as lots of the small size converters are going to off starting beginning of February onward. Hence, players are expecting local inventories among domestic producers will still be digested these few days.