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[FREE] China Morning Snapshot – 15 September 2021[FREE] China Morning Snapshot – 15 September 2021 |
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The Dalian Commodity Exchange surged drastically during the first half of the trading day, ending the morning session with three digits hikes.
Details on the spot and futures prices are shown in the following table:
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15 September 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 8881 |
USD 1218 |
+CNY 298 |
+USD 46 |
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LLDPE 2201 |
CNY 8795 |
USD 1207 |
+CNY 265 |
+USD 41 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8700-8750 |
USD 1194-1201 |
+CNY 100 |
+USD 16 |
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LLDPE (North China) |
CNY 8650-8750 |
USD 1187-1201 |
+CNY 150 |
+USD 23 |
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**All USD equivalent prices are exclusive of 13% VAT |
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Compared to the previous day, the stocks at local producers’ warehouses fell just 15,000 tons to 755,000 tons as of 15 September 2021.
Following the sharp hike in the futures market, local suppliers implemented fresh hikes on both PP and PE cargoes, shrugging off the resistance from buyers. The bullish development is a result of the electricity consumption limitation that forces a series of coal-based plants in Yulin to slash operating rates between 50-60%.
“Everyone is looking at the supply side at the moment. However, we fear that the same situation would happen to downstream manufacturers. In fact, local government in other regions have ordered the manufacturing sector to lower operating rates,” a trader commented.
Meanwhile, the concerns do not stop arbitrage traders from off-take the cargoes, considering the increases in futures trading.
Country
China
