China Morning Snapshot – 28 January 2021

Dalian Commodity Exchange for both PP and PE poses stronger range bound 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 another 10,000 tons from the previous trading day to 480,000 tons as of 28 January 2021.

Buying activities in the local market continue to weaken toward the end of the week as more manufacturers winding down operations ahead of the Lunar New Year holidays. Sources said that customers are only inquiring for LDPE film due to the lack of availability and also tighter supply outlook given the maintenance shutdown season in March – April. 

The local inventories have hit a new low, which could prevent the market from any potentially large price reductions in the coming weeks.