China Morning Snapshot – 30 March 2021

Both PP and LLDPE contract on Dalian Commodity Exchange closed the morning session in the red, shrugging off the rebound on the energy complex.

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

Local inventories dropped 45,000 tons from the previous trading day to 845,000 tons as of 30 March 2021. (Correction: Stocks at Sinopec and CNPC’s warehouses were at 860,000 tons on 29 March 2021. The previous Snapshot reported at 880,000 tons.)

Sources reported steady sentiment in the local ground, which might be a result of manufacturers attempting to replenish some cargoes before the Tomb Sweeping holiday. However, it is important to note that buyers are very selective and would only proceed with new purchases at the lower end of the overall price range. 

“Suppliers continue to fulfill export obligations for the previous deals, which could help to reduce inventory pressure further. At this pace, local suppliers would maintain a firm stance at the beginning of April,” a trader added.