China Morning Snapshot – 12 April 2021
China Morning Snapshot – 12 April 2021
Major PP and LLDPE contract ended the morning session with steep reductions, dragging the sentiment in the domestic spot market.
Details on the spot and futures prices are shown in the following table:
|
12 April 2021 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
|
Combined and reported by CommoPlast |
||||
|
Dalian Commodity Exchange (Mid-day closing) |
||||
|
PP 2105 |
CNY 8635 |
USD 1167 |
-CNY 203 |
-USD 31 |
|
LLDPE 2105 |
CNY 8305 |
USD 1122 |
-CNY 255 |
-USD 39 |
|
Spot Domestic Prices (EXW China, Cash equivalent) |
||||
|
PPH (East China) |
CNY 8800-9100 |
USD 1189-1229 |
-CNY 50-100 |
-USD 8-15 |
|
LLDPE (North China) |
CNY 8400-8700 |
USD 1135-1175 |
-CNY 100 |
-USD 15 |
|
**All USD equivalent prices are exclusive of 13% VAT |
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Total inventories at Sinopec and CNPC’s piled up 75,000 tons from last Friday to 935,000 tons as of 09 April 2021.
Trading activities in the local ground are sluggish during the early hours of the first trading day of the week. The price reductions do not appear attractive to customers, who are seeking larger discounts considering the sharp decreases on the futures market.
“Besides the latest price cuts, local producers are also offering volume discount of up to CNY100/ton to deplete more inventories before the long Labour days. The market is weak, but we managed to conclude a small deal to regular buyers,” a trader added.