China Morning Snapshot - 10 October 2018

Dalian Commodity Exchange opened on a soft note, however, PP futures rebounded strongly toward the end of the morning session. Details on the spot and futures prices are shown in the following table:

Total inventories at Sinopec and CNPC’s warehouses digested another 50,000 tons from yesterday to 760,000 tons as on 10 October 2018. 

Weaker futures market at the beginning of the trading day prompts expectation that spot sellers would offer some discounts on deals, which encourages buyers to slow down on purchases a little. However, the sentiment quickly recovers later on. 

“We were trying to negotiate with local producers but unable to obtain any large discount due to the quick draw down on inventories this week. We have purchased comfortable stock over the past two days and might gradually slow down if prices continue to rise,” a buyer reported.