China Morning Snapshot - 18 October 2018

Dalian Commodity Exchange regains some strength this morning after days of trading in the negative zone. Both PP and LLDPE contract moved higher signaling a new up-cycle.

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

Total inventories at Sinopec and CNPC’s warehouses piled up 15,000tons in the previous trading day to 770,000 tons as on 18 October 2018.

There are some improvements in term of the general sentiment in the spot ground, though buyers continue asking for discounts on deals. Traders in North-West China informed that small-scale agricultural film converters are unable to accommodate the current raw materials prices, hence decided to shut down plant instead.

“In the meantime, medium and large-scale buyers are sending in inquiries, just that negotiating on the price is a challenge,” a trader informed.