China Morning Snapshot – 24 May 2021

Major PP contract on Dalian Commodity Exchange extended the weakening trend on the first trading day of the week, while LLDPE has regained some stabilization. 

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

Total inventories at Sinopec and CNPC piled up 45,000 tons from last Friday to 780,000 tons as of 24 May 2021.

Buyers have not actively returned to the market during the early trading hours of the first trading day of the week. Several traders informed of lower inventory pressure after conceded to discounts in the previous week, however, maintain a bearish expectation in the near-term outlook. 

“The ongoing electricity shortage in Southern China coupled with the government’s efforts in curbing commodity prices speculations might keep the sentiment mediocre in the near term. We are taking hints from local producers to adjust offers,” a trader reported.