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China Morning Snapshot – 09 March 2021China Morning Snapshot – 09 March 2021 |
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Although Dalian Commodity Exchange opened the trading day on a weak note, major contracts for May delivery regained some of the loses by the end of the morning session.
Details on the spot and futures prices are shown in the following table:
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09 March 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 9531 |
USD 1294 |
+CNY 14 |
+USD 2 |
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LLDPE 2105 |
CNY 9145 |
USD 1241 |
+CNY 30 |
+USD 5 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 9500-9600 |
USD 1289-1303 |
-CNY 50 |
-USD 8 |
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LLDPE (North China) |
CNY 9050-9300 |
USD 1228-1262 |
-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 reduced 60,000 tons day on day to 915,000 tons as of 09 March 2021.
Local manufacturers are still making replenishment, however, in much smaller quantity compared to the previous trading day. Sources said that BOPP converters continue to have healthy profit margins, but PP woven bags and PE packaging converters are not as fortunate.
“But with low stock on hand, customers would still have to make replenishment, even at higher prices,” a trader added.
Meanwhile, traders are becoming less confident in the near-term outlook now that inventories are piling up at traders’ warehouses, resulting in higher storage fees.
Country
China
