China Morning Snapshot – 30 August 2021

Both PP and LLDPE contracts on Dalian Commodity ended the rocky morning session in the green, further support local suppliers to lift spot prices.

Details on the spot and futures prices are shown in the following table:

Total inventories at Sinopec and CNPC’s warehouses piled up 55,000 tons throughout the weekend to 725,000 tons as of 30 August 2021.

Chinese buyers are concerned over the potential impact of Hurricane Ida on the supply condition in the US and Latin American markets, which encourages some buyers to proceed with additional replenishment, although prices have moved higher. Meanwhile, the general sentiment remains slow due to the absence of several key producers in the market amid the month-end closing.

Chinese traders have expressed interest in diverting PP cargoes to the US market, however, booking spot vessels would be extremely challenging.