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China Morning Snapshot – 06 January 2021China Morning Snapshot – 06 January 2021 |
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The May 2021 delivery contracts for PP and LLDPE once again slipped into the negative territory this morning regardless of the positive development in the crude oil market.
Details on the spot and futures prices are shown in the following table:
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06 January 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 2105 |
CNY 7947 |
USD 1089 |
-CNY 82 |
-USD 13 |
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LLDPE 2105 |
CNY 7675 |
USD 1051 |
-CNY 65 |
-USD 10 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8050-8250 |
USD 1103-1130 |
-CNY 50 |
-USD 8 |
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LLDPE (North China) |
CNY 7700-7950 |
USD 1055-1089 |
-CNY 50 |
-USD 8 |
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**All USD equivalent prices are exclusive of 13% VAT |
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Compared to the previous day, inventories at Sinopec and CNPC’s warehouses digested 30,000 tons to approximately 645,000 tons as of 6 January 2020. (Correction: The total stocks were at 675,000 tons on 5 January. The previous Snapshot reported at 670,000 tons.)
The falling futures market affected sentiment in the local ground negatively with spot prices retracted CNY50/ton ($8/ton) from the previous day while buyers slow down replenishment to wait for more discounts.
The re-emergence of COVID-19 cases in Hubei province prompted stricter movement control that could reduce the demand for raw materials, especially when the Lunar New Year is just around the corner.
A number of manufacturers are encouraging employees not to travel this Lunar New Year to avoid the spread of the COVID-19 by giving numerous incentives including flexible holidays in the post-Spring break, local activities, and gifts.
Country
China
