China Morning Snapshot – 05 January 2021

Dalian Commodity Exchange for both PP and PE opened at a firm note and retreated slightly toward the end of the morning session. 

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

Total inventories at Sinopec and CNPC’s warehouses reduced 35,000 tons from the previous day to 670,000 tons as of 05 January 2021. (Correction: Total stocks were at 705,000 tons on 4 January 2020. The previous Snapshot reported at 725,000 tons.)

Sentiment in the local ground remains healthy as more buyers become active in making replenishment in preparation for the Lunar New Year holidays. Sources said that the local ground might continue to improve in the coming week before manufacturers once again winding down operating rates.

“We are trying to reduce the stock on hand as much as possible now that demand is recovering. Buyers could suspend purchases toward the end of the month,” a trader informed.