China Morning Snapshot – 07 January 2021

Despite the international equity market continues to climb to record high levels, Dalian Commodity Exchange traded sluggishly throughout the morning session, with PP and LLDPE contracts both plunged into negative territory.

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

Total inventories at Sinopec and CNPC’s warehouses fell 15,000 tons day-on-day to 630,000 tons as of 07 January 2021. 

Purchasing activities have weakened slightly compared to the previous day as players decided to wait for further discounts now that the futures market is retreating. However, traders express a bullish expectation for the market outlook in the coming week citing the continuous need among manufacturers to make replenishment.

On another news, holiday goers can now return train tickets without any charges would they wish to cancel their Lunar New Year holiday trips. Players are monitoring the portion of workers that would cancel their going-back-hometown plans based on the number of tickets returned.