China Morning Snapshot – 06 September 2021

Major contracts for January 2022 delivery see limited movement throughout the morning session as traders assess the impact of the weaker energy market and the shutdown at local coal-based plants.

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

Total inventories at Sinopec and CNPC’s warehouses piled up 65,000 tons throughout the weekend to 765,000 tons as of 06 September 2021.

There is limited movement in the domestic spot market during the early hours of the first trading day of the week. Apparently, spot homo-PP has more support than PE because of the shutdown at Datang Duolun Coal Chemical Corporation due to the coal consumption control. 

Traders are hoping to deplete more cargoes during the first half of the month, fearing the trading sentiment would slip into a holiday mood toward the end of September. “We are willing to negotiate with serious buyers to push out some quantities before the Mid-Autumn holiday. Our customers are not active, hence we are a bit concerned over the near-term outlook,” a trader added.