China Morning Snapshot – 03 March 2021

Major contracts for May 2021 delivery continue to track the firming trend after an impressive rebound last night. Dalian Commodity Exchange is expected to remain firm in the coming week as investors express optimism over the market outlook ahead of the Chinese People’s Political Consultative Conference (CPPCC) to outline the five-year plan for the country. 

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

There are no changes in the total PP and PE inventories at Sinopec and CNPC’s warehouses compared to the previous day. The stock level remains at 915,000 tons as of 3 March 2021.

Local sellers implemented CNY50-100/ton ($8-15/ton) hike on spot PP and PE cargoes following the development on the futures market, however, purchasing activities among local manufacturers remain very much subdued. Apparently, sellers continue to focus on the export market for both PP and PE cargoes – a trend that would persist moving forward would local demand shows no sign of improvement.