China Morning Snapshot – 26 November 2021

Most traded contracts on Dalian Commodity Exchange ended the morning session in the red on the concerns over the flare-up of locally transmitted COVID-19 cases and the new variant found overseas. 

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

Day-on-day basis, the total stocks at Sinopec and CNPC’s warehouses fall 25,000 tons to 605,000 tons as of 26 November 2021. 

The lower local inventories literally provide zero support to the pricing as spot offers slipped another CNY100/ton from the previous day. Most domestic suppliers claimed to have achieved the monthly sales target for November while expecting December to remain largely stable. 

“Except for the lower inventory levels, we are not seeing strong support for a rebound. We fear the logistic constraints might even affect demand among Southern China customers,” a trader commented.