China Morning Snapshot – 12 January 2021

Dalian Commodity Exchange showed some stabilization this morning with both PP and PE contracts halted the downtrend to settle higher. 

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

Total inventories at Sinopec and CNPC’s warehouses reduced 45,000 tons from the previous trading day to 660,000 tons as of 12 January 2021. (Correction: Total stocks were at 705,000 tons on 11 January 2021. The previous Snapshot reported at 715,000 tons.)

There are limited changes in the domestic spot market on the second trading day of the week. Suppliers continue to cut prices despite the larger than expected inventories digestion in the local ground due to the lack of confidence in the near-term outlook.

The lockdown in Hubei has started to affect the movement of raw material/finished products to and from the province that houses a good number of HDPE bag manufacturers.