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China Morning Snapshot – 29 January 2021China Morning Snapshot – 29 January 2021 |
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Dalian Commodity Exchange for both PP and PE poses a stronger trend throughout the morning session and both contracts hit new highs since mid of Dec 2020.
Details on the spot and futures prices are shown in the following table:
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28 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 8321 |
USD 1138 |
+CNY 102 |
+USD 13 |
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LLDPE 2105 |
CNY 7995 |
USD 1094 |
+CNY 105 |
+USD 10 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8350-8550 |
USD 1142-1169 |
+CNY 50-100 |
+USD 8-15 |
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LLDPE (North China) |
CNY 7900-8150 |
USD 1081-1115 |
+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 digested another 20,000 tons in the previous trading day to 460,000 tons as of 29 January 2021.
Compared to the beginning of January 2021, the stocks have digested 34.8% (or 245,000 tons) to the historically low levels today thanks to the steady pre-holiday replenishment activities in the domestic market.
It is reported that arbitrage traders are more active in scouting the cargoes this morning with the support from the firming Dalian Commodity Exchange. Meanwhile, manufacturers are not very active, as a number of these buyers are lowering operating rates to go off for the holidays.
It appears that traders are also not carrying a high level of inventories, signaling the absence of supply pressure, especially with the expected smaller than usual import arrivals in the coming months.
Country
China
