China Morning Snapshot – 23 March 2021

Both PP and LLDPE contracts on Dalian Commodity Exchange continue to fall on the second trading day of the week, dragging sentiment in the local spot market.

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

Major local producers’ inventories reduced 15,000 tons day-on-day to 910,000 tons as of 23 March 2021. (Correction: Total inventories were at 925,000 tons on 22 March 2021. The previous Snapshot reported at 940,000 tons.)

Trading activities in the local ground remain subdued as buyers bargain for better prices. A number of market players are expressing a bearish expectation for the near-term outlook, though claiming the downtrend might be short-lived given the heavy maintenance shutdown season in April that could curtail local supply. 

“It is becoming difficult for international suppliers to maintain a firm stance on import offers to China. In the meantime, export prices are also weakening,” a Chinese trader added.