China Morning Snapshot – 27 January 2021

Dalian Commodity Exchange for both PP and PE poses a significant weak trend throughout 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 30,000 tons in the previous trading day to 490,000 tons as of 27 January 2021.

Stocks at major local producers’ warehouses fell below the 500,000 tons threshold for the first time since 17 January 2020 – which was also right before the Lunar New Year in the previous year. 

Given the decreasing inventory pressure, it is expected that the local market would continue to track the stable to slightly firmer trend in the coming days regardless of the weakening purchasing interest among domestic buyers. Apparently, traders are more active in securing import PE cargoes at the moment in anticipation of a strong revival in demand in the post-holiday period.

“Market shall gradually slowdown in the coming week as manufacturers wind down operating rates. We are now concentrating on collecting debt only,” a trader said.