China Morning Snapshot – 27 July 2020

Following days of sluggish trading, sentiment on Dalian Commodity Exchange picks up this morning thanks to the positive industrial data that spur confidence among investors.

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

Inventories at Sinopec and CNPC’s warehouses pile up 60,000 tons over the weekend to 760,000 tons as of 27 July 2020.  

It is reported that buyers are more willing to make replenishment following the improvement in futures trading. However, it appears that players continue to hold a cautious stance when it comes to large buys due to the uncertain market outlook.

Meanwhile, there have been minor inventories pile up among traders’ warehouses in the Southern China area, though sources are confident that the situation might not affect prices too much since demand is coming back.