China Morning Snapshot - 12 October 2018

Dalian Commodity Exchange continues to fall into the red zone on the final trading day of the week, which also affected the sentiment in the spot market to a certain extent.  

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

Total inventories at Sinopec and CNPC’s warehouses reduced 15,000 tons from yesterday to 720,000 tons as on 12 October 2018. 

Purchasing interest slows down visibly, especially in the PE sector. A major local producer decided to open a discount scheme for LLDPE and HDPE film by CNY50-100/ton ($7-14/ton) depending on the purchased quantity.

“We have to wait and see if the recent downtrend is just a correction or a turn-around event. Customers have replenished comfortable inventories and might have time to just wait and see in the coming days,” a trader commented.

In the meantime, spot homo-PP market only fluctuates in the range on CNY50/ton thanks to the tight supply condition.