[FREE] China Morning Snapshot – 18 October 2021

Key PP and LLDPE contracts on Dalian Commodity Exchange managed to rebound from a sluggish starting with support from the record high coal futures. 

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

Throughout the weekend, total stocks at Sinopec and CNPC’s warehouses rose 65,000 tons to 850,000 tons as of 18 October 2021. 

Trading sentiment remains soft in the domestic spot market during the early hours of the first day of the week. Sellers up-adjusted offers to reflect the rebound on Dalian Commodity Exchange while remaining cautious about the near-term outlook. 

Market sources believed that the market might have hit the peak for the year, which means any potential rebound might not be drastic, especially with the agricultural film sector gradually trudge into the off-peak season toward the end of October.

“In the meantime, the cost-push remains strong that support producers’ firm stance. Prices might be more stabilized in the near term,” a trader added.