[FREE] China Morning Snapshot – 22 September 2021

Key contracts for January 2022 delivery open the first trading day of the week on a firm note but plunged into negative territory by the end of the session on concerns over the energy consumption limitation. 

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

Throughout the four off days, total stocks at Sinopec and CNPC’s warehouses piled up 115,000 tons to 835,000 tons as of 22 September 2021.

Trading sentiment dims visibly, causing spot prices to drop. All eyes are on the intensifying energy consumption limitation in Zhejiang and Guangdong provinces. There have been reports that many manufacturers in the Foshan and Dongguan area are allowed to operate only one (1) day per week, from which most companies elected to shut completely citing the lack of end product orders and high raw materials costs.

“We just lost all hope on the pre-National Day holiday replenishment activities. At this rate, we fear that local inventories would pile up even further after the Golden Week and pressure the prices,” a trader commented.