China Morning Snapshot – 25 May 2021

In spite of the surge in the crude oil market, major contracts on Dalian Commodity Exchange continue to trade sluggishly underling the effectiveness of the Chinese government’s effort to stabilize the commodity market.

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

Total inventories at Sinopec and CNPC reduced 40,000 tons from the previous trading day to 740,000 tons as of 25 May 2021.

Buyers seem more willing to make purchases on the second trading day of the week though insist on the lower end of the overall price range. While the government is working to stabilize the commodity prices, sources also see small room for further reductions, especially at the current upstream ethylene and propylene costs. 

“We maintain a cautious stance for now. The electricity issue in Southern China continues to spook converters, who refrain from keeping high inventories,” a market source said.