China Morning Snapshot - 09 August 2018

Dalian Commodity Exchange welcomes the new contract on the green side. Market is still digesting the latest announcement from the Chinese government to impose 25 per cent duties on American imports, including major petrochemical products. Meanwhile, spot ground started to slow down a little, yet the near-term prospect remains healthy.   

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

Total inventories at Sinopec and CNPC’s warehouses piled up 10,000 tons from yesterday to 680,000 tons as on 09 August 2018. (Correction: Inventory level on 8 August was at 670,000 tons).

China market this morning puts a heavy focus on the PE sector, particularly LLDPE film. Many traders are rushing to cancel purchases of USA materials done in the previous weeks, while others are looking for the new export outlet.

“We are discussing with customers in the USA and hoping to resolve the tariff issues for the existing orders that meant for year-end. One of the solutions is that we could split the tariffs and each side bear a portion,” a converter said.