China Morning Snapshot - 23 November 2018

Dalian Commodity Exchange continues falling deeper into the red zone this morning, shredding three digits in value following the weak sentiment across the global equity market.

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

Total inventories at Sinopec and CNPC’s warehouses piled up 10,000 tons from yesterday to 810,000 tons as on 23 November 2018.

The plunge in futures trading together with the piling up in local inventories is now the dual force hampering the market sentiment. Buyers decided to withdraw to the sideline in expectation of further decreases in the near term.

“The steep reduction in spot homo-PP yarn offer is much in line with expectation. The price gap between spot and futures trading was too large and there must be a correction. At the moment, we do not see the bottom yet,” a buyer said.