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China Morning Snapshot – 25 March 2021China Morning Snapshot – 25 March 2021 |
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Major contracts for both PP and LLDPE concluded the first half of the trading day with limited changes, however, the downtrend has come to a halt, following the rebound in the crude oil market.
Details on the spot and futures prices are shown in the following table:
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24 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 8863 |
USD 1203 |
0 |
0 |
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LLDPE 2105 |
CNY 8545 |
USD 1160 |
+CNY 15 |
+USD 2 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 9000-9200 |
USD 1222-1249 |
-CNY 50-100 |
-USD 8-15 |
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LLDPE (North China) |
CNY 8550-8750 |
USD 1160-1188 |
Stable |
Stable |
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**All USD equivalent prices are exclusive of 13% VAT |
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Total inventories at Sinopec and CNPC’s reduced 50,000 tons from the previous day to 850,000 tons as of 25 March 2021.
Thanks to the constant price reductions, local inventories registered a rather large drop, easing pressure among local producers. Sources reported steady purchasing activities in the local ground toward the end of the week, though buyers are more selective in terms of prices.
It is widely expected that local producers would maintain a firmer stance on spot PP and PE cargoes in April on the back of lower inventory pressure amid a heavy maintenance shutdown schedule.
Country
China
