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China Morning Snapshot – 17 August 2021China Morning Snapshot – 17 August 2021 |
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Both PP and LLDPE contracts for September settlement remain in the positive territory by the end of the morning session, however the futures market lack catalyst for a strong gain.
Details on the spot and futures prices are shown in the following table:
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17 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 8589 |
USD 1173 |
+CNY 38 |
+USD 6 |
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LLDPE 2109 |
CNY 8425 |
USD 1151 |
+CNY 70 |
+USD 11 |
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Spot Domestic Prices (EXW China, Cash equivalent) |
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PPH (East China) |
CNY 8550-8600 |
USD 1168-1174 |
Stable |
Stable |
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LLDPE (North China) |
CNY 8350-8450 |
USD 1140-1154 |
+CNY 100 |
+USD 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 fell 40,000 tons from the previous trading day to 725,000 tons as of 17 August 2021.
Market confidence on LDPE film remains strong with trading participants claiming the continued tightening supply ahead. Besides the start of the agricultural film season, sellers are expecting the preparation for the year-end shopping frenzy season to kickstart, which would boost demand for packaging materials.
“There are no more competitive LDPE film cargoes in both local and import markets. We are turning to coal-based parcels to build up stocks,” a trader added.
Country
China
