China Morning Snapshot – 13 February 2019

Despite the recovery in the global equity market, Dalian Commodity Exchange remains in the negative zone throughout this morning.  

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

Total inventories at Sinopec and CNPC’s warehouses piled up another 15,000 tons from the previous trading day to 1,085,000 tons as on 13 February 2019, reaching the highest level since 2014. (Correction: Total PP and PE inventories were at 1,070,000 tons on 12 February 2019).

Sentiment in the domestic market has not seen any major improvement despite the fact that more players are gradually returning to their desks. Pressured suppliers are offering more discounts to entice demand, but yet to yield any good feedback.

“The number of deal concluded after the discount remains below expectation. We might have to wait further for demand to come back. The fall in local market, especially in PP prices, is limiting overseas sellers’ ability to implement any large hike,” a trader said.