China Morning Snapshot - 13 August 2018

Dalian Commodity Exchange market is no exception in the latest turmoil as a result of the latest currency crisis in Turkey. January delivery contract for both PP and LLDPE fell into the red zone throughout the early trading hours today.

Spot homo-PP market started to fall, which many buyers regarded as necessary as the previous hike was too quick and lack of fundamental support.

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

Total inventories at Sinopec and CNPC’s warehouses piled up 70,000 tons compared to last Friday at 750,000 tons as on 13 August 2018. 

“Our customers are adopting a wait and see stance. Market is in the correction period, however, the continued depreciation of the Chinese Yuan against the US dollar might limit the extent of the reduction,” a trader commented.