China Morning Snapshot - 23 July 2018

Dalian Commodity Exchange retains its strength throughout the first trading hours on a fresh week. Both PP and LLDPE contracts for September delivery inched slightly higher before the break-time. 

Firmer futures market coupled with smaller than usual inventories piled up at Sinopec and CNPC’s warehouses during the weekend have encouraged local traders to implement CNY50-100/ton ($8-16/ton) hike on spot homo-PP and LLDPE film.

“Besides, we are trying to catch up with the depreciation of the Chinese Yuan. Our customers are still wait-and-see on the sideline with hope to achieve a larger discount on deals,” a trader commented. 

Total inventories at Sinopec and CNPC’s warehouses piled up 50,000 tons from last Friday at 730,000 tons as on 23 July 2018.