China Morning Snapshot – 25 April 2019

Dalian Commodity Exchange remains bearish this morning, especially for PP September delivery contract. 

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

Total inventories at Sinopec and CNPC’s warehouses reduced 35,000 tons from the previous trading day to 880,000 tons as on 25 April 2019.

Domestic spot suppliers offer small discounts on both PP and PE cargoes again to attract purchasing interest, and yet buyers are not showing the eager to purchase beyond the immediate need. Sources fear that such sluggish condition might persist until the Labor Day holiday.

“We become uncertain if the post-holiday replenishment activities would be strong. In any case, the piling inventories might prevent suppliers from any major price increment,” a trader commented.