China Morning Snapshot – 12 May 2021

PP and LLDPE contracts for September delivery on Dalian Commodity Exchange registered significant rebound throughout the morning session, boosting sentiment in the local ground.

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

Total inventories at Sinopec and CNPC’s piled up 5,000 tons from the previous trading day to 785,000 tons as of 12 May 2021.

The kneejerk reaction on the futures market to the potential coal supply shortages fuels spot prices, though most cargo takers are arbitrage traders while inquiries from converters remain mediocre, sources said. 

“Manufacturers are still unable to fully transfer the raw materials costs to end products, hence, very careful in proceeding with new purchases. In contrast, we managed to close a good number of deals to arbitrage traders,” a local producer commented.