China Morning Snapshot – 11 August 2021

With the support from the surging energy complex, September delivery contracts on Dalian Commodity Exchange jumped drastically this morning, further pulling spot market higher.  

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

Total inventories at Sinopec and CNPC’s warehouses reduced 25,000 tons day-on-day to 720,000 tons as of 11 August 2021.

In spite of the firmer prices, buyers portray no sign of rushing to make additional replenishment, instead, withdraw to the sideline expecting sellers to step back on the offers in the coming days as the market is unable to accept the hikes. 

There have been reports that several major warehouses in the Ningbo area have shut down to conduct testing and contact tracing after new infection cases are detected. Zhoushan port has also been shut for sanitization, which would cause some delays in delivery.