China Morning Snapshot – 06 August 2021

Major contracts for September delivery sustain the firming trend throughout the morning session on Dalian Commodity Exchange, however, the upswing is losing momentum with PP contract barely made any gains. 

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

Total inventories at Sinopec and CNPC’s warehouses fell 10,000 tons day-on-day to 710,000 tons as of 06 August 2021.

Trading sentiment in the domestic market holds largely unchanged from the previous day with buyers prefer to stay on the sideline after securing the needed quantities earlier this week. Both traders and producers are in no rush to make any adjustment to the spot offer claiming the manageable inventory levels.

In the meantime, the flare in the COVID-19 cases in China coupled with the government’s ‘zero-tolerance’ stance is expected to affect inter-province logistics in the coming weeks, which could impact the demand.