China Morning Snapshot: 07 February 2018

May delivery contracts for both PP and LLDPE opened with firm note, however poses weak trend toward the end of the morning session, especially PP. LLDPE futures showed a CNY30/ton ($5/ton) decreased at CNY9605/ton ($1311/ton without VAT) while PP contract reduced CNY80/ton ($13/ton), reaching CNY9356/ton ($1277/ton without VAT).

Spot homo-PP offers in Eastern China remain stable to CNY50/ton ($8/ton) softer at CNY‎‎‎‎9300-9400/ton ($‎‎‎1270-1283/ton without VAT) meanwhile LLDPE in Northern China rollover at CNY9550-9650/ton ($‎‎‎1304-1318/ton without VAT), both on a EXW China, cash equivalent.

Buying activities remained slow in the morning, as more players gradually off for holidays, meanwhile buyers are on the wait and see stance for further price reduction in the afternoon or coming few days. Some players commented that most probably local producers might consider to step back further on their offers to deplete more cargoes before holidays following slower market activities.