China Morning Snapshot - 22 August 2018

Dalian Commodity Exchange was reeling into the red zone during the early trading hours this morning, however, managed to recover most of the loses by the end of the session. However, spot offers continue to witness correction despite better trading activities in the PE sector. 

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

Total inventories at Sinopec and CNPC’s warehouses fell 15,000 tons from the previous trading day to at 775,000 tons as on 22 August 2018.

There have been reports that trading activities in the domestic PE market, especially in Northern China area are picking up and might continue to improve in the coming day after a heavy flood that destroyed homes, farmland, greenhouses and aquaculture farms in several villages around the Mihe and Dan rivers.

“Farmers would probably need new materials to regrow the sows. As a result, more mulch film converters are asking for materials now,” a trader commented.