China Morning Snapshot – 30 August 2019

January 2020 deliver contract for PP managed an impressive rebound this morning following several sluggish trading days. Despite remaining in the red zone by the end of the morning session, LLDPE contract has regained some strength.

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

Total inventories at Sinopec and CNPC’s warehouses digested 30,000 tons from the previous trading day to 665,000 tons as on 30 August 2019. 

The domestic spot market has yet to respond to the positive development on the futures ground, however, sources hope that sentiment would pick up in the coming days. A number of traders become more positive that the market might have temporarily touched the bottom and that customers might actively make replenishment in September before going off for the National Day Holiday.