China Morning Snapshot – 30 June 2021

Dalian Commodity Exchange for both PP and PE opened with a firm note however retreated toward the second half of the morning session. 

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

As of 30 June 2021, total PP and PE stocks at Sinopec and CNPC’s warehouses fell 5000 tons from the previous trading to 610,000 tons. 

Shenhua’s auction platform is closed today as the producer has not allocated any prime grade cargoes for the auction session. There are only non-prime grade cargoes available.

Trading sentiment in the domestic market has declined substantially on the final trading day of the month as suppliers withhold offers to perform month-end closing. Several market sources raised concerns over the near-term outlook, citing the potentially continued weakening trend given the fact that buyers have completed replenishment and the market needs a break from the previous hikes. 

The shipping issues remain the biggest hurdle for manufacturers at the moment. There have been reports that converters are getting year-end orders earlier than usual to tackle the logistic constraint.