[FREE] China Morning Snapshot – 17 September 2021

Dalian Commodity Exchange nosedived on the final trading day of the week due to profit-taking activities following several days of rising. 

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

In spite of the drastic price hikes in the previous day, total local PP and PE stocks reduced only 10,000 tons to approximately 720,000 tons as of 17 September 2021. 

The trading sentiment is severely affected by news that the Zhejiang municipal government has ordered a number of manufacturers in the Jiangsu area to shut down starting 00:00h on 17 September 2021 until 8 October 2021 due to the electricity consumption limitation. Offenders would be penalized by suspending electricity supply until the end of the year. 

“The situation is very much expected. The previous increases were pure speculation. We fear that the downtrend would persist until the end of September because the government is very serious about the energy consumption target. It is very likely that more converters in more areas would be lowering operating rates in the near term,” a trader said.