China Morning Snapshot - 14 August 2018

Dalian Commodity Exchange regains its strength on the second trading day of the week, jumping three digits in value. The quick recovery in futures trading has supported spot market, pulling both PP and PE prices higher from the previous trading session. 

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

Inventories digestion rate is slower than usual in the local ground in spite of the fact that availability is not very comfortable, especially for homo-PP yarn. As on 14 August 2017, stocks at Sinopec and CNPC stand at 740,000 tons, down 10,000 from the previous day.

Large-scale mulch film converters in Northern China area are quickening the pace of replenishment, sources said, which supports a more sustainable firming trend in the PE sector. “Meanwhile, PP buyers are more conservative as profit margins are really squeezed at the current market levels,” a trader commented.