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China Morning Snapshot – 21 December 2020China Morning Snapshot – 21 December 2020 |
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Both PP and LLDPE contracts on Dalian Commodity Exchange opened the trading day on a firm note, however, plunged into the negative territory toward the end of the morning session, following the energy complex.
Details on the spot and futures prices are shown in the following table:
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18 December 2020 |
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 2105 |
CNY 8313 |
USD 1125 |
-CNY 78 |
-USD 12 |
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LLDPE 2105 |
CNY 7860 |
USD 1064 |
-CNY 80 |
-USD 12 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8550-8600 |
USD 1157-1164 |
-CNY 50 |
-USD 8 |
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LLDPE (North China) |
CNY 7900-8100 |
USD 1069-1096 |
-CNY 50 |
-USD 8 |
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**All USD equivalent prices are exclusive of 13% VAT |
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Total inventories at Sinopec and CNPC’s warehouses piled up 55,000 tons throughout the weekend to 665,000 tons as of 21 December 2020.
Players are rather concerned over the new COVID-19 strain found in Europe, which could trigger tighter lockdown in this market and restraint end-product demand. There have been market talks that end-product buyers in the EU are slowing down orders amid a bearish market outlook.
“We are still hoping for a pre-Lunar New Year replenishment round in the next couple of weeks before Chinese manufacturers wind down operating rates starting 10 January 2021. However, we do not expect any major upswing in terms of prices,” a trader added.
Country
China
