China Morning Snapshot – 18 February 2021

Both PP and LLDPE contracts for May delivery surged drastically during the early trading hours thanks to the support from the resilient crude oil market.

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

Total inventories at Sinopec and CNPC’s warehouses piled up 325,000 tons throughout the holiday to 920,000 tons as of 18 February 2021.

Sentiment on the first trading day after the long Lunar New Year holiday is rather strong, driven primarily by the international market development over the past several days. 

Traders are actively looking for cargoes while suppliers insist on a firm stance citing the lack of inventory pressure and bullish market prospect ahead. It is important to note that many manufacturers are still not back to work yet and most transactions achieved at the moment are among traders.