China Morning Snapshot – 07 September 2021

Dalian Commodity Exchange extends the bull run on concerns over the coal shortages that started to impact coal-based petrochemical plants.

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

The total stocks at key local producers’ warehouses digested only 5,000 tons in the previous day to 760,000 tons as of 7 September 2021.

Trading sentiment remains on the flatline even though sellers attempted to increase PP and PE offers to reflect the bullish futures market. Buyers show little urge to place inquiries claiming comfortable stocks on hand. 

“Everyone is under the pressure to deplete the cargoes before the month-end because it is uncertain how strong the pre-and post-holiday replenishment activities would be. That is why the price list increased, but serious buyers could obtain discounts,” a trader said.