China Morning Snapshot - 20 September 2018

Dalian Commodity Exchange extended the Bull Run regardless of the trade war saga between China and the USA. January delivery contract for PP hit the highest level in September, which continues pushing spot prices higher. 

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

Total inventories at Sinopec and CNPC’s warehouses digested another 20,000 tons from the previous trading day at 650,000 tons as on 20 September 2018. 

Sentiment in the spot market remains bullish toward the end of the week, though there has been some resistance towards the spot PP offers. This is inevitable considering the quick rise in prices in a span of just a few days. CommoPlast data showed a CNY350-450/ton ($51-66/ton) hike in spot homo-PP prices compared to the beginning of the week.

“However, we are still able to attract some deals. Meanwhile, demand for PE shall stay steady ahead of the National Day holiday and we are putting all effort to deplete more cargoes now,” a trader said.