China Morning Snapshot – 13 January 2021

Thanks to the rebound in the energy complex, Dalian Commodity Exchange regains the strength this morning. Both PP and LLDPE contracts ended the morning session on a strong note.

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

Total inventories at Sinopec and CNPC’s warehouses digested 40,000 tons in the previous trading day to 620,000 tons as of 13 January 2021. 

Sentiment in the domestic spot market continues to improve marginally compared to the previous day with support from the surging crude oil market and Dalian Commodity Exchange. However, traders said that the number of deals is still not up to the expectation and customers tend to negotiate fiercely for the previous prices.

Players remain cautious about the near-term outlook amid the spreading COVID-19 related lockdown that restricts the movement of goods this week.