China Morning Snapshot – 14 January 2021

Dalian Commodity Exchange loses its momentum this morning as investors become more concerned over the spreading lockdown in the country.

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

Total inventories at Sinopec and CNPC’s warehouses dropped 35,000 tons compared to the previous trading day to 585,000 tons as of 14 January 2021.

Sentiment in the local market holds steady from the previous trading day. Buyers continue to adopt the cautious stance and source only small quantities at a time to avoid any potential price risk. In the meantime, more cities are entering lockdown that hurdle the logistic of both raw materials and finished products this week. Sources said that the lockdown would persist until Lunar New Year and discourage any strong pre-holiday replenishment activities.