China market starts new week on soft sentiment

Futures prices on Dalian Commodity Exchange in the morning session posted some minor drop for both PP and LLDPE despite the recovery observed in the energy market. PP futures move down CNY34/t from the last trading session while LLDPE futures decrease CNY75/t.

Sentiment in the spot market on the first day of the week is reported to be weak with traders are expressing bearish expectation for the outlook in the near term. A seller said, “This will be the final week before the Chinese New year holidays and most of our customers are off for the holidays by now. We remain cautious and refraining from taking position as we are not having confident about the post-holidays outlook.”

Another trader in Shanghai informed, “We visited our customers recently and most of them are struggling to secure large orders for their end product, as a result, they keep purchasing hand-to-mouth basis. The market will enter the holidays soon, hence we prefer to hold on to wait- and-see stance.”

Traders this morning are offering UAE materials at $1050-1070/t for LLDPE film, $1030/t for HDPE film and $1080-1090/t for LDPE film CFR China, LC AS term.  

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