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China Morning Snapshot – 03 August 2021China Morning Snapshot – 03 August 2021 |
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The futures market extended the weakening trend following the movement on the energy complex as traders monitor the fast-spreading delta variant in China that threatens demand.
Details on the spot and futures prices are shown in the following table:
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03 August 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 8350 |
USD 1144 |
-CNY 158 |
-USD 24 |
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LLDPE 2109 |
CNY 8080 |
USD 1107 |
-CNY 150 |
-USD 23 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8400-8500 |
USD 1151-1164 |
-CNY 50-100 |
-USD 8-15 |
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LLDPE (North China) |
CNY 8100-8300 |
USD 1110-1137 |
-CNY 50-100 |
-USD 8-15 |
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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 dropped 20,000 tons to 740,000 tons as of 03 August 2021. (Correction: The total stocks were at 760,000 tons on 2 August 2021. The previous Snapshot reported at 790,000 tons.)
Two consecutive days of price reductions seem to satisfy buyers, resulting in a more active trading sentiment on the second day of the week. Sources said that manufacturers, especially in the Eastern China region are running low on stock-on-hand, and tend to secure cargoes at the lower end of the overall price range.
The flare-up in the number of COVID-19 infection cases in China triggers more stringent control of cross-province logistics, which might cause delays in delivery or higher delivery costs moving forwards.
Country
China
