China Morning Snapshot – 14 March 2019

Dalian Commodity Exchange opened on a firm note, however, retreated toward the end of the morning session. 

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

Total inventories at Sinopec and CNPC’s warehouses digested 10,000 tons from the previous trading day to 940,000 tons as on 14 March 2019.

Sentiment in the Northern area remains healthy thanks to the traditional high demand season from the agricultural film sector, while other areas remain pretty calm. Without any major pick up in demand, local inventories might surge above the 1 million tons threshold throughout the weekend and cap prices from strong rebound. 

“Speculations on the VAT rate cut are diminishing. Customers are buying hand-to-mouth and strongly convinced that local market still has room for reduction despite firming import offers,” a trader added.