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[FREE] China Morning Snapshot – 27 September 2021[FREE] China Morning Snapshot – 27 September 2021 |
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Both PP and LLDPE contracts for January 2022 delivery hit the highest levels in almost three years as traders continue to bet on the impact of the exacerbating coal shortages.
Details on the spot and futures prices are shown in the following table:
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27 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 9533 |
USD 1306 |
+CNY 201 |
+USD 31 |
|
LLDPE 2201 |
CNY 9265 |
USD 1269 |
+CNY 300 |
+USD 46 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 9400-9500 |
USD 1288-1301 |
+CNY 300-350 |
+USD 46-54 |
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LLDPE (North China) |
CNY 9250-9350 |
USD 1267-1281 |
+CNY 350 |
+USD 54 |
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**All USD equivalent prices are exclusive of 13% VAT |
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Compared to last Friday, local PP and PE inventories fell 40,000 tons to 720,000 tons as of 27 September 2021. The drop in stocks was because some Chinese companies were working during the weekend.
Trading sentiment shows an uptick during the early trading hours today, however, arbitrage traders are visibly more active than other buyers. Sources said that the electricity limitations forced converters to adopt a cautious stance, yet, the ever-rising Dalian Commodity Exchange signals that the current firming trend could persist in the coming month.
“Some buyers are returning to make additional purchases even though their plants are operating at lower rates. Other customers are turning to the import market because of the lower shipping costs and more competitive price levels,” a market source added.
Country
China
