China Morning Snapshot - 27 December 2018

Thanks to the strong rebound in the global equity market, the Dalian Commodity Exchange also regains its strength this morning. 

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

Total inventories at Sinopec and CNPC’s warehouses digested 40,000 tons from the previous day to 570,000 tons as on 27 December 2018.

The large reduction in the inventories levels eases the pressure on local producer slightly. However, sources expected that suppliers might attempt to push more cargoes out before buyers take off for the New Year holiday from 29 December to 1 January.

“The price list is firmer, but we are open to negotiation. The long weekend holiday will lead to inventories accumulation among the local producers. We cautiously monitoring the market movement, hoping to see pre-Lunar New Year replenishment activities to emerge,” a trader added.