[FREE] China Morning Snapshot – 12 October 2021

Key contracts on Dalian Commodity Exchange registered the first fall in days, which market sources attributed to traders taking positions after the market hit record high levels.

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

Total stocks at Sinopec and CNPC’s warehouses digested 30,000 tons in the previous trading day to 780,000 tons as of 12 October 2021.

The heating sentiment observed over the past two sessions come to a halt today. The domestic PP and PE market dropped slightly to reflect the weakness in the futures trading, pushing market participants to the sidelines to wait for further development. 

“The retreat is necessary because not all converters could accept the recent hikes. However, we personally think that as long as the coal prices remain high, there is little room for downstream PP and PE market to drop sharply,” a trader added.

Several sources said that it is important to monitor the next development in the electricity supply or any potential changes in governmental policies because the prospect of a persistent uptrend hinges on whether more manufacturers could restore normal operating rates.