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China Morning Snapshot – 31 August 2021China Morning Snapshot – 31 August 2021 |
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Key contracts on Dalian Commodity Exchange settled the morning session in the red following the weak Chinese manufacturing data.
Details on the spot and futures prices are shown in the following table:
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31 August 2021 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
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Combined and reported by CommoPlast |
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Dalian Commodity Exchange (Mid-day closing) |
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PP 2201 |
CNY 8143 |
USD 1114 |
-CNY 41 |
-USD 6 |
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LLDPE 2201 |
CNY 8085 |
USD 1106 |
-CNY 100 |
-USD 15 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8350-8450 |
USD 1142-1156 |
Stable |
Stable |
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LLDPE (North China) |
CNY 8100-8300 |
USD 1108-1135 |
-CNY 50-100 |
-USD 8-15 |
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**All USD equivalent prices are exclusive of 13% VAT |
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There are no changes in the total PP and PE stocks at Sinopec and CNPC’s warehouses compared to the previous day, at 725,000 tons as of 31 August 2021.
Trading sentiment in the domestic spot market remains mediocre as a result of the falling futures market. The minor discounts on both PP and PE offers failed to draw customers back to make replenishment, yet sellers are reluctant to agree to larger reductions claiming the low inventory pressure.
A number of traders are profoundly optimistic of another rebound in September on the back of the manufacturing season. “But we hold a cautious stance toward the final quarter of the year. Unless export windows open up again, the local market might be bloated with new PP supply,” a trader said.
Country
China
