China Morning Snapshot – 15 December 2020

Dalian Commodity Exchange for both PP and PE extended the downtrend throughout the morning session. 

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

Total inventories at Sinopec and CNPC’s warehouses digested 35,000 tons day-on-day to 650,000 tons as of 15 December 2020. (Correction: The total stocks were at 685,000 tons on 14 December 2020. The previous snapshot reported at 720,000 tons)

There have not been any major improvements in terms of market sentiment on the second trading day of the week, as buyers prefer to source only small quantities despite the reduction on both PP and PE cargoes. 

Sources are rather bearish about the near-term outlook citing the absence of major manufacturers in both the Northern and Eastern regions. “In the meantime, we expect trading activities to revive once these manufacturing plants resume operations,” a trader added.