China Morning Snapshot – 19 March 2021

Dalian Commodity Exchange concluded the first half of the trading day on negative notes due to the steep reduction in the energy market.

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

Total inventories at Sinopec and CNPC’s reduced 5,000 tons day-on-day to 860,000 tons as of 19 March 2021.

With the futures market extended the weakening trend, major local producers also step back on spot PP and PE cargoes to entice demand. However, customers continue to source the needed quantity from arbitrage traders, whose offers remain below the producer’s price list. 

“Customers are more active in making replenishment as we agreed to additional discount for April delivery cargoes. We think buyers are preparing materials for the coming months, in anticipation of reduced import arrivals,” a trader commented.