China Morning Snapshot – 01 March 2019

Dalian Commodity Exchangeregains its strength this morning and remains in the positive zone, which elevated sentiment in domestic spot ground a little.

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

Total inventories at Sinopec and CNPC’s warehouses climbed 20,000 tons from the previous trading day to 955,000 tons as on 01 March 2019. 

Market sources reported that demand from the BOPP and woven bag sector is rather sluggish in recent weeks due to slower end product demand. Following the surge in futures trading, spot sellers attempted to hold a firm stance on spot cargoes, but most deals achieved at unchanged levels from the previous day.

“We would have to see how is the inventories pressure among local producer in the coming week, however, we expect further discounts on spot cargoes. Demand needs to be stronger to digest the materials,” a market source said.