China Morning Snapshot - 20 November 2018

Dalian Commodity Exchange gallops lower on the second trading day of the week and hit the lowest level since the end of March 2018. This is in line with the tumble in the global equity market, which also drags spot market down. 

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

Total inventories at Sinopec and CNPC’s warehouses digested 45,000 tons from yesterday to 825,000 tons as on 20 November 2018.

In spite of the large reduction in the inventories at major local producers’ warehouses, sellers in the distribution market remain less than optimistic about the near to medium term outlook. This leads to the active forward-selling transaction for after Lunar New Year delivery. 

“Our concern is that pre-Lunar New Year replenishment might not be as strong as expected. Our customers only source material hand-to-mouth at the moment while supply is rather comfortable,” a trader complained.