China Morning Snapshot – 26 April 2019

Dalian Commodity Exchange poses weak trend for the morning session, whereby PP futures break below the low level on 8 April 2019.

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

Total inventories at Sinopec and CNPC’s warehouses reduced 20,000 tons from yesterday at 860,000 tons as on 26 April 2019.

Market sentiment remain slow approaching weekend, although some spot players are working on this Sunday (as working replacement before Labor Day Holiday), however, they commented that if there are no futures trading, basically even working also spot market shall not have any movements, especially until today, futures market still continue to stay weak. Some players commented that as they understood from their converters, including BOPP makers, right now the lower raw material costs are good for their profit margin, however, the problem is end product orders are not picking up and still remain slow. Most of the inventory pressure are accumulated either on distributors or producers hand, and mostly are planning to wait and see until post-holiday, having pessimistic expectation for the near term.