China Morning Snapshot – 29 June 2021

September delivery contracts for PP and LLDPE on Dalian Commodity Exchange registered the first drop in nearly two weeks after the energy complex took a steep dive. 

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

Total inventories at Sinopec and CNPC’s warehouses fell 50,000 tons from the previous trading day to 615,000 tons as of 29 June 2021.

While the drops on the Dalian Commodity Exchange have yet to affect the prices in the spot market, Chinese players believed that the market has to go down slightly because the firming trend has been taking place for the third consecutive weeks now. 

“Customers started to reduce purchases to ask for discounts. In the meantime, we receive no signals from local producers to lower prices because of the low inventory pressure and the expected low import arrivals in the month of June and July,” a trader reported.