[FREE[ China Morning Snapshot – 25 October 2021

Dalian Commodity Exchange extended the weakening trend throughout the morning session regardless of the resilient crude oil market. The continued falling coal futures signal the government’s seriousness about taming speculations and hoarding. 

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

Throughout the weekend, the total PP and PE inventories at Sinopec and CNPC’s warehouse piled up 50,000 tons to 840,000 tons as of 25 October 2021.

Trading sentiment remains sluggish throughout the morning session as buyers prefer to wait on the sidelines following the falling Dalian Commodity Exchange. Traders said that local producers would soon push more quantities to the distribution market ahead of the month-end closing.

“We have to focus on the export market because local demand is too weak to absorb the inventories. Shipping is getting more difficult to some destinations, which add more pressure on Chinese trader,” a market source said.

There have been market talks about manufacturers starting to receive new end-product export orders for 2022 delivery, much earlier than usual due to the concerns on logistics. Sellers hope demand would revive in the near term.