:: Trivial price surge in the contract market

Restricted by the weak performance in the spot market, the upcoming contract price might go upward but maintain at an insignificant level of 1-2%. Vendors who quoted lower in the 2H August will raise their quotation this time and the range of contract price will stay at the current level. In line with this pattern, we expect the upward strength is limited for contract price in the 2H Sept. if the premium between spot and contract price remains the same.

:: Lukewarm spot market

The price trend for spot market in the past week didn't take a dive by the month-end/quarter-end effect. But the diminishing of real demand to boost price level gives marketers deficient reasons to build up inventory. On the contrary, traders are released from pricing pressure this week since it is the beginning of a month. Taking consideration of the sufficient inventory level in the mid or down-stream, we estimate the spot price this week will remain flat unless the real demand emerges.