China Morning Snapshot – 19 February 2021

Major contracts for May 2021 delivery on Dalian Commodity Exchange retreated in the early trading hours, however, regain their strength by the break time.

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

Total inventories at Sinopec and CNPC’s warehouses digested 15,000 tons in the previous trading day to 925,000 tons as of 19 February 2021. (Correction: Total stocks were at 940,000 tons on 18 February 2021. The previous Snapshot reported at 920,000 tons).

The domestic market has somewhat stabilized following an energetic trading session in the previous day. Traders, who made replenishment on the first trading day after the Lunar New Year decided to wait on the sideline for clearer market direction once more buyers return to work in the coming week.

“The market has overheated in the previous week as a result of surging crude oil market and severe shortage in the West. Players need to calm down to assess the situation locally,” a trader added.

Meanwhile, sources informed of active inquiries for homo-PP to the export market and the mainstream offers are at $1260/ton FOB China at the time of this report.