[FREE] China Morning Snapshot – 16 September 2021

Dalian Commodity Exchange latches on the support from the surging energy complex as well as the coal and electricity consumption limitations within China to end the morning session with another drastic hike.   

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

Total PP and PE stocks in the local market fell 25,000 tons from the previous trading day to 730,000 tons as of 16 September 2021.

Naturally, local PP and PE market firms up visibly as sellers take advantage of the latest development on the Dalian Commodity Exchange. However, buyers have slowed down, too, in resistance to the higher price levels. At the moment, a number of converters in the Guangdong area have reduced operating rates to 5 days per week also due to the electricity consumption limitation. 

“Both supply and demand in local China market are falling, but at the moment, supply is declining in at a faster pace. We take this opportunity to deplete as many cargoes as we could because as more converters face the same limitation, buying sentiment would weaken, too,” a trader said.