China Morning Snapshot – 16 January 2019

Dalian Commodity Exchange regains some strength in the first half of the trading day; however, no major swing is expected despite news on the Chinese government plan to improve credit availability to smaller companies in the country.   

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

Total inventories at Sinopec and CNPC’s warehouses digested15,000 tons from the previous trading day to 565,000 tons as on 16 January 2019. 

It is mid of the week and Chinese traders have not seen major pick up in purchasing activities as expected. Previous, players have regarded this week as a ‘crucial week’ for pre-holiday replenishment activities. 

“Buyers would gradually going off for Lunar New Year by next week. It becomes uncertain now if customers would return for a last minutes purchases,” a trader commented.