China Morning Snapshot - 09 October 2018

Dalian Commodity Exchange sustains the firming trend on the second trading day of the week. During the intra-trading hours, PP contract breached the historical high but retracted slightly by the break-time.

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

Total inventories at Sinopec and CNPC’s warehouses dropped 50,000 tons from the previous trading day to 810,000 tons as on 09 October 2018. 

Sentiment in the domestic spot market remains healthy. Buyers are aggressively looking for homo-PP cargoes to meet immediate production need, which coupled with supply tightness has boosted prices to the new high for the year. 

“In the meantime, we are searching for LLDPE film cargoes. Demand shall soon come back and we expect an increase of at least CNY200/ton ($29/ton) for this grade in the coming days,” a trader informed.