China Morning Snapshot - 08 August 2018

There is a minor technical correction on September delivery contract for PP on Dalian Commodity this morning, which players deemed necessary after the continuous hike in the previous session. This does not affect the momentum in the domestic spot market. 

Details on the spot and futures prices are shown in the following table:

Total inventories at Sinopec and CNPC’s warehouses reduced 20,000 tons from yesterday to 680,000 tons as on 08 August 2018.

Converters are still resisting the recent hike and tend to source materials based on need citing thin profit margins. “However, we think there is a high potential that market would continue to move higher in the near term,” a trader informed.

Chinese buyers are hoping that with the government’s latest effort to stabilize the Chinese Yuan, local suppliers might slow down the current pace.