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China Morning Snapshot – 31 March 2021China Morning Snapshot – 31 March 2021 |
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May 2021 delivery contracts for both PP and LLDPE traded sluggishly throughout the morning session, indicating the lack of risk appetite among traders.
Details on the spot and futures prices are shown in the following table:
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31 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 8815 |
USD 1187 |
-CNY 4 |
-USD 0.6 |
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LLDPE 2105 |
CNY 8510 |
USD 1146 |
0 |
0 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 9000-9200 |
USD 1212-1239 |
-CNY 50 |
-USD 8 |
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LLDPE (North China) |
CNY 8550-8750 |
USD 1152-1179 |
-CNY 50-100 |
-USD 8-15 |
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**All USD equivalent prices are exclusive of 13% VAT |
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Local inventories dropped 10,000 tons from the previous trading day to 805,000 tons as of 31 March 2021. (Correction: Total inventories on 30 March 2021 were at 815,000 tons. The previous Snapshot reported at 845,000 tons.)
There is limited movement in the local ground on the final trading day of the month, though the lethargic futures market casts a shadow on the domestic spot ground, where offers for both PP and PE continue to weaken.
Although there has been widely expected that local sellers would maintain a firm stance on the spot cargoes in April due to the rapid decline in inventory pressure, Chinese buyers preserve a very conservative stance in proceeding with new purchases.
