China Morning Snapshot - 28 November 2018

Dalian Commodity Exchange manages a strong rebound by mid of the week, especially for PP contract. The development has some positive impact on the spot market this morning. 

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

Total inventories at Sinopec and CNPC’s warehouses reduced 45,000 tons from the previous trading day to 775,000 tons as on 28 November 2018. Players attributed the continuous inventory reduction toward the regular month-end stock depleting activities by producers.

Sentiment in the domestic spot market improved visibly today thanks to the support from positive futures trading. Converters seem to have better confidence in making new purchases, though refrain in small quantity. 

“We closed a good number of deals during the first half of the trading day, however, we are still uncertain if this is the turning point for the market,” a domestic naphtha-based PP producer informed. In contrast, transactions in the PE section remains subdued.