[FREE] China Morning Snapshot – 23 September 2021

Both PP and LLDPE contracts on Dalian Commodity Exchange regain strength on the second trading day after the Mid-Autumn Festival break as inventors shrug off the potential impact of the Evergrande issues while leveraging on the continued coal shortages. 

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

Total inventories at Sinopec and CNPC’s warehouses fell 35,000 tons in the previous trading day to 800,000 tons as of 23 September 2021.

Converters remain on the sideline due to the energy consumption controls that have affected their operating rates since last week. However, arbitrage traders continue to look for spot cargoes at the lower end of the overall price range to take advantage of the surging Dalian Commodity Exchange. 

“We are trying to push as many cargoes out as possible to prepared for inventory build-up throughout the National Day holiday. In the immediate term, export is not a viable option, hence all focus is on the local ground,” a Chinese producer added.