China Morning Snapshot – 15 February 2019

Dalian Commodity Exchange halts the downtrend reported in the past several sessions to remain in the green zone this morning.

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

Total inventories at Sinopec and CNPC’s warehouses reduced 10,000 tons from the previous day to 1,075,000 tons as on 15 February 2019. However, with the weekend fast approaching, the number might surge drastically by the beginning of next week, sources fear. 

Sentiment in domestic spot market is mediocre and it is not a surprise that many converters are facing labor shortage, which limit their ability to resume normal production rate. Some companies might take up to a month to put the situation under control. 

 “That is why purchasing activities are still lethargic. We would have to wait further for the demand to come back. Today, we manage to sell small quantity to regular customers only,” a trader reported.