China Morning Snapshot – 28 May 2021
China Morning Snapshot – 28 May 2021
Both PP and LLDPE contact traded in the negative territory in spite of the resilient energy complex. The morning session concluded with losses.
Details on the spot and futures prices are shown in the following table:
|
28 May 2021 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
|
Combined and reported by CommoPlast |
||||
|
Dalian Commodity Exchange (Mid-day closing) |
||||
|
PP 2109 |
CNY 8338 |
USD 1157 |
-CNY 38 |
-USD 6 |
|
LLDPE 2109 |
CNY 7700 |
USD 1068 |
-CNY 120 |
-USD 19 |
|
Spot Domestic Prices (EXW China, Cash equivalent) |
||||
|
PPH (East China) |
CNY 8550-8800 |
USD 1186-1221 |
+CNY 100 |
+USD 16 |
|
LLDPE (North China) |
CNY 7750-8100 |
USD 1075-1124 |
-CNY 50 |
-USD 8 |
|
**All USD equivalent prices are exclusive of 13% VAT |
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Total inventories at Sinopec and CNPC fell 15,000 tons from the previous trading day to 670,000 tons as of 28 May 2021.
As inventory pressure continues to decline, major local producers decided to maintain a firmer stance on the spot PP cargoes even though the number of real transactions is mediocre partly due to buyers have made sufficient replenishment.
“Everyone is slowing down to wait for new offers for June in the coming week. we expect local producers to keep prices on the stable trend amid the absence of inventory pressure,” a trader reported.