China Morning Snapshot – 08 February 2021

Dalian Commodity Exchange for both PP and PE poses firm range-bound throughout the morning session. 

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

Throughout the weekend, total inventories at Sinopec and CNPC’s warehouses piled up 40,000 tons to 560,000 tons as of 8 February 2021.

Despite the firming spot prices, sentiment in the local ground has diminished significantly. Customers have completed replenishment and are ready for the holiday while traders are wrapping final documentations before leaving for the Lunar New Year. 

There have been reports that inventories on traders’ hands have piled up to about 70% warehouse occupancy over the past week, which is much higher compared to the previous month but still lower than usual stock accumulation ahead of the long holiday.