China Morning Snapshot - 10 August 2018

Dalian Commodity Exchange continues to face correction during the first trading hours on the final trading day of the week. However, the development does not seem to have any effect on the domestic spot ground and sources are saying that the fall in futures trading was merely due to the transition in the contract number.   

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

Inventories at Sinopec and CNPC’s warehouses have not changed after a surge in the previous day. PP and PE remain at 680,000 tons as on 10 August 2018, sources informed.

Converters, including those claimed to have been able to transfer the higher raw material costs to end product prices, decided to sideline hoping that further correction on Dalian Commodity Exchange would pressure spot sellers to reduce prices. 

“It has been really difficult to lift end product prices while maintaining a good number of orders. Our buyers would slow down purchases if we increase prices again, therefore, we have to be cautious,” a manufacturer said.