China Morning Snapshot – 24 April 2019

September delivery contracts for PP and LLDPE on Dalian Commodity Exchange enter the break-time on a rather diverge trend. However, the changes are not significant enough to alter the sentiment in the spot ground. 

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

Total inventories at Sinopec and CNPC’s warehouses reduced 25,000 tons from yesterday to 915,000 tons as on 24 April 2019.

Customers continue to avoid purchasing cargoes beyond the immediate need despite the recent surge the energy complex. Sellers are expecting to see some pre-holiday replenishment activities in the coming days, yet there has not been any clear indication from the buyer’s side. 

“We plan to offer additional discount to stimulate the demand. Customers are too conservative while local availability is rather comfortable. We think the import market might face increased downward pressure if local ground does not improve,” a trader said.