China Morning Snapshot – 26 January 2021

Dalian Commodity Exchange ended the morning session on a mixed note though the fluctuations are not major. 

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

Total inventories at Sinopec and CNPC’s warehouses digested 25,000 tons in the previous trading day to 520,000 tons as of 26 January 2021. (Correction: Total stocks were at 545,000 tons on 25 January 2021. The previous snapshot reported at 555,000 tons.)

Sentiment in the domestic spot market remains average on the second trading of the week. Despite the slower inventory digestion rate, the stocks at major local producers’ warehouses are much lower than usual, from which players could expect the near-term outlook to be largely stable. 

“We have sold out all allocations for February at CNY50-100/ton below the current market levels. The post-holiday outlook is rather uncertain, hence we are not interested in keeping inventories,” a trader reported.