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China Morning Snapshot – 02 June 2021China Morning Snapshot – 02 June 2021 |
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Both PP and LLDPE contracts concluded the morning session with gains, elevated by the positive international equity market and the surging energy complex.
Details on the spot and futures prices are shown in the following table:
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02 June 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 2109 |
CNY 8406 |
USD 1168 |
+CNY 20 |
+USD 3 |
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LLDPE 2109 |
CNY 7840 |
USD 1089 |
+CNY 20 |
+USD 3 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8550-8750 |
USD 1188-1216 |
Stable |
Stable |
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LLDPE (North China) |
CNY 7850-8150 |
USD 1091-1132 |
+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 reduced 30,000 tons from the previous day to 700,000 tons as of 02 June 2021. (Correction: Total stocks were at 730,000 tons on 1 June 2021. The previous Snapshot reported at 760,000 tons.)
Trading activities remain steady in the domestic market although customers tend to negotiate very aggressively for discounts, indicating the buyer’s inability to accept any price increment at the moment.
Sources said that traders are more cautious about making replenishment and that arbitrage traders prefer to secure cargoes on Shenhua Auction Platform for better price levels.
“For several days in a row now we would only be able to sell about 50-80 tons per day. Customers are not active enough because the market is in mid of the off-peak season. We expect the market to improve toward the end of the month,” a trader commented.
Country
China
