China Morning Snapshot – 21 May 2021
China Morning Snapshot – 21 May 2021
Dalian Commodity Exchange for both PP and PE opened with a soft note and rebounded toward the end of the morning session with the LLDPE contract jumped back into the green territory.
Details on the spot and futures prices are shown in the following table:
|
21 May 2021 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
|
Combined and reported by CommoPlast |
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|
Dalian Commodity Exchange (Mid-day closing) |
||||
|
PP 2109 |
CNY 8415 |
USD 1158 |
-CNY 68 |
-USD 11 |
|
LLDPE 2109 |
CNY 7827 |
USD 1077 |
+CNY 55 |
+USD 8 |
|
Spot Domestic Prices (EXW China, Cash equivalent) |
||||
|
PPH (East China) |
CNY 8450-8650 |
USD 1163-1190 |
-CNY 50 |
-USD 8 |
|
LLDPE (North China) |
CNY 7900-8200 |
USD 1087-1129 |
Stable |
Stable |
|
**All USD equivalent prices are exclusive of 13% VAT |
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Total inventories at Sinopec and CNPC fell 15,000 tons day-on-day to 735,000 tons as of 21 May 2021.
Despite the improving sentiment on the Dalian Commodity Exchange, sources reported dull trading activities in the domestic spot ground. It appears that the electricity shortage in the Guangzhou area is worsening, in which manufacturers here informed of being ordered to operate only 4 days a week until further notice.
Chinese PP suppliers informed of having received export inquiries from South American buyers with deals concluded at $1270/ton FOB China. “But other markets are unable to accept these price levels. The export window remains shut at the moment,” a trader added.