China Morning Snapshot – 03 September 2021

Dalian Commodity Exchange for January 2022 delivery wrapped up the morning session with sharp increases from the previous day on concerns over the coal shortages that could curtail local availability.

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

Total inventories at Sinopec and CNPC’s warehouses reduced 30,000 tons from the previous trading day to 700,000 tons as of 03 September 2021.

The continuous firming futures market caused some frowns in the local ground, however, there are also buyers, who decided to make additional purchases in anticipation of further increases in the coming week. Meanwhile, local traders attempt to push out as much quantity as possible, fearing that the market might slip into holiday moods toward the end of the month. 

“Buyers are on and off about new purchases that make the outlook a bit cloudy. We are also attempting to direct some parcels to the export ground to ease the pressure on the local market,” a producer said. The source sold homo-PP at $1170/ton FOB China on the final trading day of the week.