China Morning Snapshot – 25 December 2020

Sentiment on the Dalian Commodity Exchange remains sluggish throughout the morning session, with major contracts for PP and LLDPE continue to settle in the red.

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

Compared to the previous trading day, PP and PE inventories at Sinopec and CNPC’s warehouses have digested 50,000 tons to 565,000 tons as of 25 December 2020. (Correction: Total stocks were at 615,000 tons on 24 December 2020. The previous Snapshot reported at 620,000 tons.)

Trading activities have not registered any major changes from the previous day. Buyers prefer to source in small quantities while waiting for additional discounts. There have been reports that more companies in the manufacturing sector in the Northern China area are being ordered to shut down due to persistent air pollution.

“Buyers might return to make new purchases at the beginning of January once the Eastern area eases the electricity cuts, especially in the Zhejiang area,” a trader said.